Q & A

Jen’s dad is worried he will lose his pension after his investments were changed

Financial planner’s action is outrageous

Q I’m writing on behalf of my 85-year-old father. After 60 years of living in his home, the upkeep and maintenance are too much and he’s selling it. He’s mobile and has decided to travel and stay with his son.

My father has $10,000 in savings, and had $100,000 invested through a financial planner in a super account with shares and managed funds that ticked away, with a revised plan to swap out two shares in August/September 2021.

Unfortunately, the financial planner retired and transferred the file to a new planner. Suddenly, in December 2021, his portfolio was completely sold off and an annuity purchased, paying him $590 a month, so he would run out of money in several years.

He didn’t realise anything had changed, and had not requested any change to the structure. I read the latest letter and could not comprehend why the new planner changed his portfolio, which maintained dividends, paid a small income and paid the planner a very small fee – as opposed to Dad running out of money!

We called the planner and questioned the change, and to set up a meeting, but he couldn’t meet that week, and later called to say he could no longer manage the account.

Unfortunately, these changes came to light in March 2022, when I looked at options to put the maximum allowed funds