SMSFs attractive not only due to costs
Individuals who have decided to set up their own self-managed super funds (SMSFs) are motivated by far more than costs or investment returns, with a desire for control over their own personal retirement income goals playing an important role in the process, according to the SMSF Association’s new “Is an SMSF the right answer for you?” survey.
The study, which surveyed of close to 800 SMSF trustees, showed that the key reasons why trustees chose an SMSF were control, flexible investment choices, dissatisfaction with their existing fund, and tax and estate planning which meant that individuals wanted to take control of their financial future.
The other key takeaways form the survey were:
- Eight out of ten trustees believe their SMSF is good value for money;
- Nine out of ten trustees believe managing and engaging with their own SMSF provides them with a level of satisfaction;
- Around half of all SMSF trustees own or have owned a small business
- The majority of SMSF trustees spend between one to five hours a month administering their SMSF;
- Over half of the SMSF members surveyed have had their SMSF for over ten years.
“With the Rice Warner research released on Monday showing how SMSFs are competitive with APRA-regulated funds based on costs and investment returns, it’s important to focus on the qualitative factors that are often even more important when it comes to setting up an SMSF,” SMSF Association’s chief executive, John Maroney, said.
“The Association has always believed this to be case. Individuals who opt for an SMSF are those for whom being able to directly influence their retirement income strategy is very important. In many instances they are small business owners who not only like having that control but believe they can execute it responsibly, especially, in many instances, when they have an SMSF specialist advising them.”
AUTHOR
Oksana Patron
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