Investment and retirement strategies around the family home were hot topics for financial advisers' clients in 2020.

BT financial advisers' December 2020 quarter survey found clients continue to query advisers about their eligibility for the downsizer contribution scheme nearly four years since it was introduced.

The downsizer contribution, limited to $300,000 or $600,000 for a couple, does not count towards the non-concessional contributions cap. It was introduced the 2017-18 budget as part of the government's package of reforms to reduce pressure on housing affordability in Australia.

BT technical consultant Tim Howard said advisers can encourage their clients to discuss early in the process whether a downsizer contribution to super should be part of their financial plan.

Another area of interest for clients downsizing is the impact selling the family home will have on the Age Pension.

This is particularly relevant among clients who sold their principal place of residence and want to use the proceeds to buy, build or renovate a new principal home. Such proceeds can be exempt under the assets test for 12 months and will not adversely affect their pension during that time.

Clients also frequently asked about the bring-forward contribution changes.

Reforms are underway to increase the eligibility age to 67 in order to make a bring-forward non-concessional contribution to super. While this was slated to take effect on 1 July 2020, the legislation has yet to pass in parliament.

Howard said the volume of adviser queries on this subject remains high, as advisers question whether the start date will be amended, if a grace period will be put in place, and whether the proposed legislation will likely become law.

"The legislative process has been delayed, however there is still a high level of confidence that the critical component, regarding the bring-forward non-concessional contribution to super, will pass, as it's not contentious," he said.

Treatment of foreign assets, pensions and income streams were issues members who lived overseas or maintain a connection to foreign countries frequently asked about.

Many own a property or receive a pension from a foreign government where they previously worked.

Due to the restrictions on travel during COVID-19, some may be leaving their income streams as is, while others are looking into selling their assets.

Howard said advisers are being asked how these will be treated by Centrelink in relation to clients' eligibility for the Age Pension.

Broadly, foreign assets and income streams are captured in Centrelink's assessment for eligibility, however the treatment can be different depending on the country, so it's best to thoroughly check each client's situation, he added.