Self managed superannuation funds (SMSFs) are gaining popularity as members choose to DIY rather than entrust super fund trustees with their retirement savings, according toTaxpayers Australia.
Superannuation Trends figures from theAustralian Prudential Regulation Authority(APRA) show that the assets of SMSFs and small APRA funds increased by almost 22 per cent between March 2002 and March this year.
This increase comes despite “the use of scare tactics designed to confuse people and dissuade them from setting up their own funds”, Superannuation Australia executive director and Taxpayers Australia technical director Barbara Smith says.
Smith says the criticism that DIY super fund trustees miss investment opportunities and that costs are higher is unfounded.
“It is a disgrace that the larger funds are getting away with their smoke and mirrors tactics and cannot tell their members what costs are reducing their account balances. It’s time they got their own house in order,” Smith says.
“It goes without saying that trustees of self managed super funds do need to understand their funds and keep up to date with changes and ensure they don’t break any of the rules.”
“Even so, many people are saying yes [to DIY super], so that they control the investment decisions… and at least they know exactly what investments their self managed superannuation fund has and the amount and nature of the costs,” Smith says.
APRA’s figures showed that assets in industry funds have increased by 15 per cent and assets in retail funds increased by 9 per cent during the same period.
