Improvements in platforms will add to the increasing popularity of the self-managed super fund (SMSF) sector, according to Bendigo Wealth.
The SMSF sector has already seen a consistent increase in take up rates and Bendigo Wealth said that improvements in administration tools have added to the ease in trustees managing their own super.
“There are now some very good tools out there – like SuperAstute – to help people manage their SMSF and comply with all the changing rules,” Bendigo Wealth senior manager, technical and research Julie McKay told InvestorDaily.
“So with those tools, and given that demand is being driven by something that resonates with customers, I don’t think SMSFs are going to go away as a space.”
Ms McKay said that SMSF popularity is not just restricted to an older demographic who are close to retirement age or those who have a high net worth income.
The sector is also seeing interest from investors who are after a greater level of control for wealth building.
“It’s not just your very wealthy people; we’re seeing it from people in the lower age bracket, particularly the 35-40 age bracket,” she said.
“They might only have the minimum amount needed to economically start up a super fund, but I do think the interest in SMSFs is being driven more by needs beyond just simple financial numbers.
“Tools like SuperAstute just make the admin so much easier for them that it’s actually feasible for people in that younger age bracket.”
While scaled advice provisions still require further details, Bendigo have said the introduction of limited advice will further add strength to the sector.
“I think that is again another one of those tools that marry into the whole MySuper style superannuation products,” Ms McKay said.
“People can plug and play with the products and services that they need, and I think the more products we can provide and the more we can do, the better off the customer will be.”
