Trends towards younger self-managed super fund (SMSF) trustees are part and parcel of increased superannuation engagement, according to the director of financial planning for Chan & Naylor, David Hasib.
"I think as super fund account balances have increased over time, from the beginning in 1992 when the 3 per cent SG [superannuation contribution] was first announced, people have ever so gradually begun to pay more attention to it," he said.
"It's no longer an abstract investment where it's something for the future and ends up being dismissed."
And while increased engagement has been evident in the retail and industry sectors as well, Hasib said that SMSFs were quite often the more significant beneficiary.
"Younger generations are taking a closer look at their fund, taking a closer look at the fund manager, at the superannuation administration provider," he said.
"But they're also questioning what sort of options they have when they want to allocate their money to a specific type of investment, and it's at that point that SMSFs become appealing."
"As we know, the number one reason for having an SMSF is control," Hasib continued.
"People are wanting a much greater say in investing in direct assets but, more particularly, they want to take an active role in and control the destiny of their money."
Originally published by SMSF Essentials.
