The number of Australians who are running their own self-managed superannuation fund (SMSF) has cracked one million.
The burgeoning scene has jumped 26.5 per cent over the past five years according to figures released by the Australian Tax Office.
Andrea Slattery from the SMSF Professionals Association told news.com it was a big milestone to reach.
“It’s an enormous commitment by Australians investing in their own future for their commitment to their self-funded retirement,” she said.
“You have to be 100 per cent engaged to be in a SMSF, it demonstrates the level of engagement to their retirement savings program.”
“Most people in SMSF are self-employed or professionals and currently we have 65 per cent of all retirement income in Australia that is held by SMSFs.”
Despite being labelled ‘self-managed’, people still need assistance when managing their fund, by getting advice from an auditor, financial planner and a lawyer.
It can be an attractive way to help your super grow quicker, but it is probably not suited to absolutely everyone.
SuperRatings chairman Jeff Bresnahan explained this when he also spoke news.com.
“You can get control but reality is that it’s not something you can set and forget and that’s what happens to a lot of people,” he said.
“You do need a lot of assistance and advice when running a self-managed super fund.”
Mr Bresnahan said there was no substitute for getting professional help when running your SMSF.
“Even if you have financial literacy and the time I think you would be hard-pressed to outperform professionals.”
“They arte suited to many people but there are a lot of people who have them that shouldn’t have them.”