“We expect that the proposals will significantly affect the plans and investment strategies of many of our clients,” Meller will say in a speech AMP’s annual general meeting in Melbourne today.

“We also expect that many people will now benefit from professional advice to optimise their savings and investments, so this will be a net positive for our advisers given the detailed nature of the government’s proposals.”

Last week’s federal budget included plans to limit superannuation tax concessions, capping at $1.6 million the tax-free balance of retirement accounts.

Any excess would have to be put into other investments or treated as superannuation in the accumulation phase and taxed at 15 per cent.

Meller is urging politicians to stop tinkering with super so people can get used to the system and place their trust in it.

“We support the government’s intent to define the purpose of the superannuation system, and to ensure the system is fair and equitable for everyone,” Meller will say.

“But given the significance of the proposed changes, we would strongly urge a prolonged period of stability so that Australians’ confidence in saving for retirement through super is not undermined.”

Meller will also tell shareholders the company is in a strong position despite a 38.9 per cent drop in first-quarter cashflow at its Australian wealth management unit.

Meller said market volatility has affected the unit’s performance in the three months to March 31, with net cashflows down from $342 million in the prior corresponding period to $209 million.

Chairman Simon McKeon will tell his final AGM before retirement that the corporate watchdog’s probe into alleged unethical behaviour at rival insurer CommInsure is affecting the industry as a whole.

“It’s difficult not to feel distressed by these stories, which remind us all of the importance of life insurance at the most vulnerable times of a persons life,” McKeon said.

AAP