Designed to empower and inform those considering an SMSF for their retirement, this year’s SMSF Week provided resources, events and accredited SMSF Specialists to help you make the best and most informed decision for your financial future and retirement.

We believe that every Australian has the right to a good quality of life in retirement. An SMSF offers control, flexibility, and choice but ultimately, they aren’t the best option for everyone: it comes down to individual circumstances. Our vision for this year’s SMSF Week was to provide tools and resources to answer one important question: when is an SMSF the right answer for you?

Bringing the week to a close was our virtual SMSF + Investor Expo, presented by SMSF Connect and curated for existing SMSF investors or those thinking about starting an SMSF. Featuring industry experts, educational sessions and a range of SMSF and investment products and services, the Expo explored a wide variety of topics all from the comfort and privacy of your home.

Is an SMSF the right answer for you?

With over 1.1 million Australians choosing to manage their own Self Managed Super Fund, it has become a popular option for those wanting more control over their retirement savings.

To help those who are considering setting up an SMSF for their retirement, we published a two-page flyer containing key considerations that need to be taken before establishment. Containing the results from a survey taken by nearly 800 SMSF trustees, the flyer revealed the main motivations for setting up an SMSF.

Choice, control, and flexibility are the main motivating factors that were essential in their decision-making process aside from cost, where ‘9 out of 10 trustees believe managing and engaging with their own SMSF provides them with a level of satisfaction’.

Cost of Operating SMSFs 2020: Infographic

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As the cornerstone of this year’s SMSF Week, the SMSF Association retained Rice Warner to release of a key piece of research, updating its previous findings for ASIC in 2013 ‘Costs of Operating SMSFs‘. Assessing the cost-effectiveness of SMSFs compared to APRA regulated super funds, the research, proudly supported by SuperConcepts, examines the size at which an SMSF becomes a viable option for those who are considering to establish an SMSF, or continuing to use an SMSF, for their retirement savings.

We believe the sector is best served by having information which is both contextual and balanced. An SMSF is not for everyone, but for those individuals where an SMSF is appropriate, the benefits can be considerable.

To access the one-page Infographic summarising the key findings from the research report, join the SMSF Connect Community.

SMSF Week resources

Meet John and Kerry

Watch John and Kerry share their personal story on becoming Self Managed Super Fund (SMSF) trustees and their motivations for establishing an SMSF for their retirement savings

In the media

SMSF Association Media release

An SMSF Association survey of nearly 800 SMSF trustees finds individuals are motivated by far more than costs or investment returns when deciding to establish a self-managed super fund.

SMSF Association CEO John Maroney says: “The long-standing debate when comparing an APRA-regulated fund with an SMSF is typically restricted to a simple analysis of costs and returns,

“But the reality, as the SMSF Association’s new ‘Is an SMSF the right answer for you?’ Flyer highlights is not that simple, with an individual’s desire for control over their own personal retirement income goals also playing an important role in the decision-making process.

The Australian

Self-managed super funds with balances of $200,000 or more are cost competitive with APRA-regulated funds, while at $500,000, SMSFs become the cheapest option, according to new research from Rice Warner.

In its first assessment of the competitiveness of self-directed super funds since 2013, Rice Warner also found that SMSFs with holdings of $250,000 could prove cheaper to run than industry and super funds if trustees undertake some of the administration or choose one of the cheaper admin services.

“In the seven years since the previous report, average costs of APRA regulated super funds have risen whereas SMSF costs have fallen,” Rice Warner executive director Michael Rice said.

The Australian

 

A golden era for industry super funds might be coming to an end as a series of key developments in superannuation shine light on improved prospects for Self Managed Super Funds.

The dispute over costs of both commencing and running a SMSF fund should finally be put to rest following a new report from the Rice Warner Group (commissioned by Self Managed Super Funds Association). The report says fees for funds with $200,000 or more are competitive with industry and retail funds, while SMSFs with more than $250,000 are the “cheapest alternative” provided the trustees undertake some of the administration.

The Australian

Step back from two groundbreaking reports on superannuation over the last week and you discover that most ordinary Australians understand what they need in retirement. But the superannuation industry is simply not providing for those needs.

The shortcomings were underlined by the $35 billion exodus of superannuation funds when the government released the clamps.

SMSF Association Media release

A research report by the actuarial firm Rice Warner offers clear guidance to existing and potential self-managed super fund (SMSF) members whether this form of superannuation could be cost-effective and the right retirement savings vehicle for them.

SMSF Association CEO John Maroney says the very important decision of choosing the right superannuation vehicle is one that should be guided by evidence and specialist advice, and this Rice Warner report, supported by the SMSF administrator SuperConcepts, certainly provides the data on which to base an informed decision.

“This research updates a report Rice Warner prepared for ASIC in 2013 and used to inform regulatory guidance. Additionally, for the first time, the research is based on actual data culled from about 100,000 SMSFs that provides valuable evidence to guide that advice and should be a key reference point for all interested parties.”

Money Management

Individuals who have decided to set up their own self-managed super funds (SMSFs) are motivated by far more than costs or investment returns, with a desire for control over their own personal retirement income goals playing an important role in the process, according to the SMSF Association’s new “Is an SMSF the right answer for you?” survey.

The study, which surveyed of close to 800 SMSF trustees, showed that the key reasons why trustees chose an SMSF were control, flexible investment choices, dissatisfaction with their existing fund, and tax and estate planning which meant that individuals wanted to take control of their financial future.

 

Your Life Choices

Rice Warner report reveals the magic number that makes SMSFs a competitive option.

The federal government says self-managed superannuation funds (SMSFs) are too tricky for the layman. “There may be better options for your super savings,” the Australian Tax Office (ATO) says. “It’s best to see a qualified, licensed professional to help you decide.”

The Australian Securities and Investment Commission advises you to choose a financial adviser, despite the challenges being worked through in that industry.

About SMSF Connect

If you have a self managed super fund or are thinking of setting one up, SMSF Connect aims to empower you to self-educate and take greater control over your destiny in achieving a dignified retirement.

We understand that education leads to greater knowledge and the ability to make more informed decisions. Take charge of your future with SMSF Connect, your comprehensive education resource for your SMSF.

SMSF Connect includes up to date information on the latest SMSF and superannuation news, education resources, checklists, information sheets, events, webinars, videos and more.