SMSFs actively seek out financial advice
Self-managed superannuation fund (SMSF) investors have a higher propensity to seek out and value advice than non-SMSFs, while nearly half of recent SMSF investors are under the age of 30.
That's according to a new study by Macquarie Bank and the SMSF Professionals' Association of Australia, which found that 46 per cent of recent SMSF investors are under the age of 30 and one in five are females who still live at home with one or more parents.
In addition, this younger generation of SMSF investors often engages with other family members in the decision-making process and ongoing monitoring of the fund.
Macquarie Bank analytics insights manager Gary Lembit said it was therefore important for SMSF advisers to involve family members in the advice process.
"As we are aware, high property prices are making it a real challenge for young Australians to enter the housing market, and this is one of the main reasons why adult children are staying at home for longer," he said.
"It is also encouraging them to think about where else to invest their money, so they are building their wealth for the future, and of course, retirement."
According to the study, recent SMSF investors (60 per cent) and intending investors, (63 per cent) are also highly likely to seek out ways to earn more, with intending investors particularly likely to work multiple jobs (31 per cent).
Established investors are more likely to invest spare cash, while nearly one in four said they "love experts" more than non-SMSFs, Macquarie stated.
"The encouraging news for SMSF professionals is that SMSF investors love experts, so there is a real opportunity for them to demonstrate the value they can add, in the knowledge that their clients will be very open to receiving their advice," he said.
In other findings, SMSF investors have allocated more of their investments towards direct equities, while direct property has continued to grow in importance as an asset class.
Lembit added that SMSF professionals have the opportunity to build higher quality client relationships if they can demonstrate an understanding of the distinct needs of investors at each stage of the SMSF lifecycle.
Recommended for you
The corporate regulator has cancelled the AFSL of a Perth advice firm with the firm having previously seen its licence temporarily suspended in 2020.
Having proposed changes earlier this year, ASIC has clarified how it will support licensees with additional relief under the reportable situations regime.
AMP has partnered with BlackRock and research house Lonsec to provide a model portfolio capability on its North platform that offers “portfolio customisation at scale” to advice practices of all sizes.
Money Management rounds up actions ASIC took against advice individuals in the first half for FY25 from exam falsifications to dishonest conduct.
