SMSFs ready for post-retirement
As the rest of Australia's super industry grapples with the challenges of post-retirement, the reality, according to Andrea Slattery, chief executive officer of the SMSF Professionals' Association of Australia (SPAA), is that self-managed super funds (SMSFs) are already well placed.
"The SMSF post-retirement space is actually very well advanced, working really well and providing people with opportunities to support themselves both from a self-sufficiency point of view as well as from a knowledge and understanding standpoint," she said.
"It's capable of providing people with reasonable levels of support at the moment, but it's also an area where you've got far more engagement by the members themselves."
Pointing to the results of the SPAA/Macquarie Bank SMSF Generations Report as evidence, Slattery said that close to 60 per cent of SMSF trustees had been found to be evaluating what they were doing and, more importantly, how they were doing it.
"But one of the funny things was that the group that's actually most interested in social media, the largest growth group in social media and in online information and support, was actually the silent generation, those over 65," she said.
"So they are actually the largest users of information services about what's happening to them, how they're doing, what kinds of investments are around, and seeking services for advice."
However, Slattery said that the key point with respect to SMSFs and post-retirement was the fact that 50 per cent of SMSF assets were held during retirement.
"And while the larger super funds, particularly in the retail sector, offer retirement products, there's simply no need to hold a particular product in the SMSF sector," she said.
"It simply becomes a compliance and administration issue, because the way in which you manage your pension is above how you invest.
"You can do very well through post-retirement simply by managing your portfolio and managing it well."
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