The self managed super fund (SMSF) sector has been through a period of immense growth since its inception, to become the largest part of the $2 trillion Australian superannuation industry today.
But what lies ahead for SMSFs? Many commentators believe the growth in SMSFs has peaked and the golden years are behind us, however while there are some logical reasons for the tapering in the growth of new funds being established, there are also some fundamental changes underway in the sector that are likely to underpin the popularity of SMSFs in the future.
The sector continues to evolve away from the traditional do-it-yourself (DIY) proposition to an advised proposition as a result of the new wave of trustees who are looking for more of a help-me-do-it approach to managing their super. Further, the digitisation of SMSF investment management and administration via platforms and other online technology increases the appeal of the sector to young, digitally-savvy Australians.
These trends are significant and broaden the SMSF opportunity for nimble financial advisers that recognise the need to adapt their business model to capture the new breed of SMSFs, making the changes necessary to tap into this growing pool of semi-autonomous investors.
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