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SMSF specialists to ‘benefit’ as young trustee numbers grow

Having the portfolio of Assistant Treasurer in Cabinet and combined with Small Business is a very positive development for the self-managed super sector, says SMSF Association Managing Director/Chief Executive Officer Andrea Slattery...

Younger Australians are increasingly attracted to self-managed super funds – and that spells good news for SMSF specialist advisors.
The 2015 Intimate with Self-Managed Superannuation report found that most young trustees are looking for an advisor to receive the right support and advice they need to manage their SMSF. But advisors need to be competent to service this younger, savvy group.

SMSF Association CEO/Managing Director Andrea Slattery says the report’s findings, as well as anecdotal evidence gathered from talking to members, suggest this is a potentially lucrative “market opportunity” for SMSF specialists.

“The report’s figures say it all. More than two-thirds (68%) of trustees aged between 20 and 30 and more than half (52.9%) of those aged between 31 and 40 are not receiving financial advice.

“This under-utilisation of specialist advice is despite the fact that younger trustees are more likely to find SMSF-related tasks challenging, especially as they relate to compliance.

“The other pertinent fact is that these trustees are actively seeking an SMSF specialist offering a ‘one-stop shop’ that covers all their needs, so those advisors who are competent and can meet this objective are well placed to take advantage of this emerging market.”

The report says that in the past two years, close to two-thirds (65.7%) of advisors have seen a growing demand from 31-40 year olds, in line with 2013 (66.2%), while more than one in five (21.7%) have experienced an increase in demand from 20-30 year olds, down slightly compared with 2013 (34.4%).

Slattery says what is fascinating about this development of younger people looking to establish an SMSF is that don’t see their relatively low balances or the compliance responsibilities as barriers to entry. Superannuation is a long-term financial commitment by them to their future.

“They want to be engaged with their superannuation on a long-term basis, to take control of it from a young age, cognisant of the fact they are likely to be living well into their 90s. They want to be self-reliant in retirement, and that’s to be encouraged.

“These results confirm one of the SMSF Association’s core beliefs – that how well we live in retirement is a function of how well we have managed our super and who has advised us,” she says.

About the SMSF Association:
The SMSF Association exists to improve the quality of advisors, the knowledge of trustees and the credibility and health of a vibrant SMSF community.

Contact for interviews:
Andrea Slattery
SMSF Association CEO/Managing Director
M: 0417 898 317

Nicholas Way
Shed Media
M: 0409 585 979