Advisers need to educate on SMSFs
One of the main reasons more people don't start self-managed super funds is a lack of confidence or knowledge, suggesting a large opportunity for advisers, according to new research.
Presenting the third annual 'Intimidate With Self Managed Super' report in partnership with Russell Investment, SMSF Professionals Association (SPAA) chief executive Andrea Slattery said the opportunity for advisers who can educate clients is "significant".
The main reason for avoiding smsfs among high net worth clients was that they preferred the security of Australian Prudential Regulation Authority regulated funds.
But for non-HNWs they key reason was a lack of knowledge or confidence,which Slattery said was "hugely disappointing" in this day and age with so many opportunities for training and learning.
"This is a huge opportunity for advisers," she said.
Advisers can build their businesses by helping their clients understand the sector. Trustees surveyed sought out specialists, they were coach seeker and wanted a mentoring relationship, Slattery said.
The research, conducted by CoreData, surveyed 1,555 consumers of whom 437 were SMSF trustees and 224 were high net worth individuals without SMSFs.