Three quarters of SMSF members say they are satisfied with their fund, according to the second annual SMSF Insights survey published by the Financial Services Council and UBS Asset Management.
Asked why they had this positive view of their fund 28% nominated ‘more control’ and 28% said it was good investment returns.
“Achieving greater control and choice of investments remains the key driver for setting up an SMSF – and a source of satisfaction among those who have made the switch,” said Bryce Doherty, head of UBS Asset Management in Australia and New Zealand.
FSC CEO Sally Loane said: “It is good to see that SMSF investors are, in general, well engaged and satisfied with their retirement savings strategies.
The single biggest barrier faced when setting up SMSFs was ‘Being confident enough to manage my own retirement savings’ (30%), followed by ‘the ATO’s compliance requirements’ (19%). Though 32% said there was no barrier.
31% said the most challenging part of running their SMSF was ‘making my own investment decisions’, followed by ‘complying with the ATO’s regulatory requirements’ at 26%.
49% estimated that they would need at least $1 million in total savings to provide a comfortable retirement. Though the SMSF balances needed before retiring were lower, 23% nominated between $500,000 and $1 million, 17% $1 – $1.5 million and 22% over $1.5 million.
The 2016 SMSF Insights survey was based on the views of 601 SMSF holders.