SMSFs offer control but not certainty
Retirees may feel they have more control via a self-managed superannuation fund (SMSF), but the structure can still not deliver the guarantee many of them are seeking, according to PIMCO country head, New Zealand, Tony Hildyard.
Discussing new research released by the company this month, Hildyard said certainty remained the missing ingredient.
"Retirees are very risk averse, they want some income certainty, they want control of their assets and they're very frightened of running out of money (during retirement)," he said.
Hildyard said while a self-managed super fund may well provide much of what retirees were looking for, the problem is a lack of guarantee.
"On average, it's going to work because what you tend to find with self-managed super funds is that they're more income-biased," he said. "That's a definite advantage, but the problem is that when you retire, you don't have a regular income, your tolerance for risk disappears or reduces, and you can't take the uncertainty of an average outcome."
"You can't be in a situation where you've got a 50 per cent chance that you'll have enough money to retire on."
Recommended for you
The winners have been announced for the 2025 Super Fund of the Year Awards, held in Melbourne on 26 November by Money Management's sister brand Super Review.
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
