POWERED BY MOMENTUM MEDIA
Greater risk for retirees with SMSFs: CareSuper
CareSuper chief executive Julie Lander has warned there is a big difference between a member controlling their own money compared to administering their own fund.
The complexity of reporting, compliance requirements and high costs associated with self-managed super funds (SMSFs) could result in greater financial pressures for retirees.
"Many investors attracted to establishing an SMSF have little understanding of ongoing compliance costs and the severe fines they potentially face if they don't comply with a raft of complex regulatory requirements," Lander said.
Adviser fees pushed costs up even further, according to Lander.
"What brings this cost into question is that a majority of SMSFs are invested in cash, term deposits and Australian equities," she said.
"These investment options are available via CareSuper at a fraction of the cost."
The not-for-profit super fund launched a direct investment option last December in response to the needs of investors who did not want the burden of trustee obligations.
The ASX300 investment option will be expanded to include term deposits, exchange-traded funds and listed securities this year.
Other funds to incorporate direct investment options include Club Plus Super, AustralianSuper, legalsuper and Telstra Super.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
