Speaking at the Actuaries Financial Services Forum in Sydney, Deloitte principal, actuaries and consultants, Peter Larsen said a “huge” amount of money has gone into SMSFs but with trustees ageing, large SMSFs could reach a “tipping point”.
“There is going to be people with large SMSFs but they are 80 and they are starting to actually get to the point where they don’t want to have a self-managed fund anymore,” he said.
“They don’t want the effort, the hassle, the complexities of it; they actually want to go back the other way into a pooled vehicle and just let them deal with all that stuff.”
Mr Larson also said the industry is "clearly" going to see retail and industry funds trying to stop the “flow out” into SMSFs.
“We are already seeing a lot of that in member direct investment options, which are probably the biggest attraction to SMSFs. I expect that will be becoming more sophisticated,” he said.
“I think the big retail fund and industry fund players are certainly going to come up with a solution that potentially allows people to do everything they could in an SMSF,” he added.