Younger people are becoming more attracted to SMSFs and are showing a greater level of engagement, debunking the myth that an interest in retirement comes later in life, a Macquarie Bank and SMSF Professionals’ Association of Australia (SPAA) study has revealed.
The “2013 Active Management Report” found 46 per cent of recent SMSF investors were under the age of 30, while 44 per cent of the next wave of intending investors were also under 30.
SPAA chief executive Andrea Slattery said the research “debunked the misconception of the profile of SMSF investors”.
Slattery said the results demonstrated the younger generation’s quest for knowledge in the area, which was likely to be an indication they wanted to do something earlier rather than later.
“We hear a lot about the lack of engagement, particularly in the younger generations – that it’s only as you get older that you become engaged,” she said.
“This research shows that there’s a significant amount not only in the recent investor category, but also in the category of those investors intending to open an SMSF, so you’ve got people who are genuinely considering their future retirement options much earlier than what the current market is suggesting.”
She said as the profile of SMSF investors had evolved dramatically, SMSF professionals needed to quickly adapt their advice models to meet the different needs of investors in the fast-growing sector.
In addition, the report found the key characteristics of SMSF investors included being active and open-minded, with intending investors showing the greatest level of an adventurous outlook.
“Those intending to get a SMSF are a group of people in the population who are hearing things about self-managed super and are taking an active interest,” Macquarie analytics insights manager Gary Lembit said.
“Importantly, they’re showing a high degree of curiosity about what the value might be and so this is a key characteristic of SMSF investors.”
The survey also revealed a positive disposition towards advisers, with one in four intending investors stating they “love experts”, while 21 per cent were fascinated by the opinions of others.
However, both current and intending investors regarded themselves as independent thinkers, with less than 4 per cent willing to admit they were reliant on experts.
