When someone speaks the words Self Managed Super Fund (SMSF), often people associate it with those at or nearing their retirement years. This is not an incorrect association as SMSFs are often a great option for those entering their retirement, however, more and more investors in lower age brackets are looking to SMSFs to manage their super.
In the previous nine months, 62.1 percent of SMSF entrants were between the age of 34 and 54,. Further, the number of entrants aged between 25 and 34 more than doubled when compared to one year ago. Clearly, the benefits and advantages of an SMSF are far more reaching across age brackets than previously assumed.
We believe one of the key drivers of this upward trend is the almost incomparable flexibility and control given to investors who utilise an SMSF to manage their superannuation investments. Younger investors are often more growth orientated as they have a longer period of their working life remaining to manage bigger swings in investment returns. An SMSF allows such investors to access growth focused investments including direct residential and non-residential property along with offshore opportunities in the same class.
So next time you join a discussion on the topic of Self Managed Superannuation Funds, be confident in knowing that the common assumption that they are only suited to those at retirement is the old way of thinking. Whether an SMSF is suitable to an investor is entirely based on their individual circumstances and what they need and want in terms of superannuation investments, regardless of their age.