Trend to SMSFs continues for pre-retirees
Industry and retail super funds may currently dominate pre-retirement superannuation, but Deloitte partner for superannuation Russell Mason believes that a passing of the torch occurs as superannuants approach retirement.
"Pre-retirement, industry super funds are fantastic beneficiaries of our superannuation system and they obviously have a key advantage over self-managed super funds when it comes to size," he said.
"But, on current trends, there's still going to be this enormous switching to self-managed funds upon retirement, and that's where most of the money is going to reside."
Mason said that while there was no guarantee that such a trend would continue, it was up to the rest of the superannuation industry to look at the challenges of post-retirement and come up with appropriate and attractive solutions.
"People want a safety net in retirement, they want to know what they're investing in, and many think they have the best chance of doing that through a self-managed super fund."
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