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Young people seeking out SMSFs
There is a growing number of younger people who want to access a self-managed superannuation fund (SMSF), according to Stake.
The digital trading platform launched its first SMSF in November 2020 and said the average age of people using it was 40, compared to an average establishment age of 46. This age had been creeping down during the pandemic as it was 50 pre-COVID in 2019.
Stake Super was a full-service, low-fee digital SMSF that allowed investors to invest their super in Australia and US equities and exchange traded funds (ETFs).
Speaking to Super Review, Matt Leibowitz, chief executive of Stake, said the firm had taken the option to launch a digital SMSF as many people were deterred by the administration of existing models.
“The average age of people using the SMSF is 40 and we heard from them that they wanted to set up an SMSF but found it was too expensive to get it set up and was scary to do it themselves.
“With that in mind, we do the administration, the setup and the audit for them which makes it simpler.”
He said the firm had seen “really strong take-up” since launch with over 1,000 customers using the strategy which he said was “going in the right direction”.
Updates since launch included the ability to invest in cryptocurrency which it had found to be the second-most common investment by its users after equities.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
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