Writing for ifa sister publication SMSF Adviser, David Barrett, Bravura’s principal consultant, portfolio solutions, said there have been public discussions within the super industry suggesting SMSF growth is “exponential and explosive”.
However, such suggestions are “separate from reality” and not a true reflection of the SMSF sector’s actual growth patterns, which have been on a steady upwards trajectory for the last eight years, according to Australian Taxation Office (ATO) data, Mr Barrett said.
“If we [examine] the actual growth in the number of SMSFs using data provided by the ATO, we see that the rate at which people are starting their own funds can hardly be described as exponential,” Mr Barrett said.
“Indeed, the figures indicate a steady and predictable rate of growth over a long period of time.”
The hyperbole around growth in the sector risks creating a misleading impression that SMSFs are “flavour of the month” with limited long-term prospects, however starting a SMSF is now seen as the next logical step for average Australians, Mr Barrett added.
“Investors have realised they can take direct control of their retirement savings and engage with advisers and fund managers on their own terms.”
SMSF have been flavour of the month with Accountants & Tax Agents for years. Consider they weren’t licensed to provide advice but gave it anyway (buy an investment property), what recourse will clients have for being ‘advised’ to establish such a fund? What basis will it be determined against? When the client retires and realises they have been ill advised thinking their Accountant surely is ‘qualified’, what happens then? The Baby Boomers in the main don’t realise they have been shafted by successive governments inaction to appease powerful lobby groups (Accounting bodies). There is still much to play out in this space.