The Roy Morgan Research Superannuation & Wealth Management in Australia report found that of all the people who switched to an SMSF in the 12 months to June 2013, 88 per cent obtained advice, with 82 per cent seeking advice from a professional financial planner or accountant.
“In comparison, only 20 per cent of those switching to an industry fund who sought advice obtained it by professional advice, instead relying on the advice of employers (49 per cent) and friends and family (26 per cent),” the report stated.
Financial Planning Association chief executive Mark Rantall said the results were not surprising, given the complexity of establishing an SMSF is an impetus for advice.
“It is pleasing to see that before making such an important decision consumers are seeking professional advice,” Mr Rantall told SMSF Adviser.
“We would caution consumers about setting up a self-managed super fund without seeking professional advice first to ensure it was in their best interests and met their needs.”
The report also found that of all the movement between superannuation funds, the SMSF sector has fared best.
“In the 12 months to June 2013, self-managed funds outperformed the industry in attracting the largest net shares of switched products, with 9.0 per cent,” the report stated.
Just two per cent of the switched products were people moving out of SMSFs – more than offset by the 11 per cent of switches into the sector, creating the nine per cent gain, the report found.
But the total number of people switching super funds was down on previous quarters.
In the June 2013 quarter, the proportion of people who switched their super fund was at 3.4 per cent, down from 4.9 per cent in the June 2012 quarter.
The report suggested this “may be due to the fact that members are more satisfied with the performance of their fund”.
The research further considered who was likely to switch funds in the next 12 months, with SMSF trustees most likely to stay put.
"The least likely to switch were self-managed funds, with only 1.9 per cent considering it ‘very likely’ that they would do so,” the report found.