POWERED BY MOMENTUM MEDIA
SMSF trustees confident on retirement goals
Self-managed superannuation fund (SMSF) trustees were more confident about being self-reliant in retirement compared to non-trustees, a report showed.
A joint report by nabtrade and the SMSF Association showed that despite expecting they would need more in retirement, almost one out of seven (69.1 per cent) trustees were confident they would meet their desired retirement income, up from 66.7 per cent in 2013.
This was in contrast to non-trustees, with only 35.2 per cent saying they are confident, compared to 34.3 per cent in 2013, according to the 'Intimate with Self-Managed Superannuation Report'.
"A possible factor behind the retirement confidence gap is that trustees are considerably more likely than non-trustees to be receiving financial advice (52.8 per cent versus 29.5 per cent), the report said.
NAB Head of SMSF Solutions, Gemma Dale, said SMSF trustees were more active in managing their savings.
"As we've seen over the last decade, SMSFs are not a flash in the pan. SMSF trustees are motivated to take control of their retirement savings, and are making well informed investment choices to ensure they achieve the income they want in retirement," Dale said.
Trustees who had not retired believed they would need $1838 a week to meet their desired retirement lifestyle, up from $1611 in 2013. Non-trustees believed they would need $1555 a week, up from $1192 in 2013.
SMSF trustees familiar with their investment strategy were most cognizant of risk, according to SMSF Association chief executive Andrea Slattery.
The most common factors deliberated when designing the strategy were the overall risk of the portfolio (65.8 per cent), diversification of the fund's investments (63.4 per cent), and the risk of the fund's investments (61.6 per cent).
"The prevailing attitude of de-risking is evident among trustees who allocate at least 10 per cent of their SMSF to cash, the asset class that is universally perceived as less risky," she said.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
