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SMSF establishment peaked in 2002/03
The establishment of self-managed superannuation funds (SMSFs) peaked in 2002/03 but they remain a popular retirement savings option for many people, according to the latest research published by the Investment and Financial Services Association (IFSA).
The research, conducted by Investment Trends, was aimed at examining the desires and drivers behind the establishment of SMSFs and canvassed the views of more than 1,200 pepole.
IFSA chief executive, Richard Gilbert said the report had found that the average starting balance for an SMSF established in the past two years was $300,000 with 38 per cent of working respondents describing themselves as business owners or self-employed while 14 per cent described themselves as managers or professionals.
He said the report had found that 55 per cent of investors had cited “control” as a reason for establishing an SMSF and that those with smaller balances were somewhat more likely to say they had established their fund “on advice from a friend”.
Gilbert said that 46 per cent of people running an SMSF earned more than $80,000 a year and the average total amount spent on running n SMSF was $3,500.
The report said that 58 per cent of SMSFs had managed funds as part of their asset mix, with 78 per cent of respondents indicating they were open to investing in managed funds when considering future asset allocation.
The report said that very few respondents had said they did not utilise some form of financial adviser with four out of five reporting that they currently used either an accountant or a financial planner.
AUTHOR
Mike Taylor
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