POWERED BY MOMENTUM MEDIA
Better product development needed to work with SMSFs
Shifting away from traditional high allocations to listed shares and cash/term deposits is unlikely to occur quickly, but retirement income product development will provide attractive options for older SMSF retirees, according to the SMSF Association.
Speaking on the Money Management Retirement Income Webinar, John Maroney, SMSF Association chief executive, said many self-managed super fund (SMSF) retirees had achieved good performance from ASX-listed companies due to franking credits.
“The shifting away from traditional high allocations to listed shares and cash deposits is unlikely to occur quickly,” Maroney said.
“There’s certainly increased interest in diversification and opportunities for this, particularly for those in their 70s and 80s, they have done particularly well over the most of their retirement already.
“They are probably less likely to shift quickly, but again it’s important for them to think about the future direction of their asset allocations and their product selections as well.”
Maroney said if cash returns remained as low as expected and the Age Pension could be accessed through better developed retirement products that would become an important consideration for retirement income planning.
“It’s quite a complex question that will require face-to-face advice, I don’t think many of the older retirees will be attuned to robo-advice,” Maroney said.
“But they do need to be able to access affordable advice from their financial planners, accountants and others involved in the process.”
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
