Just over one third of respondents to the UBS and Financial Services Council’s SMSF National Survey have planned their finances for retirement, with 22 per cent having a plan and 22 per cent having a detailed plan.
“While many SMSF holders report they have made plans for their retirement, most report they are yet to or are still in the process of planning for their retirement. This suggests that SMSF holders are not necessarily more organised for or focused on their retirement,” the research stated.
The research also found there is a “sizable demand” for annuity and allocated pension products among SMSF holders, with 43 per cent of respondents stating they are likely to buy a product that provides an income stream from their SMSF.
Approximately 13 per cent of respondents reported they are leveraged for property within their SMSF, with 10 per cent reporting they are leveraged for equities.
A further 43 per cent of respondents reported they have a formal arrangement with a financial adviser, while fewer than one third have a formal arrangement with an accountant for financial advice.
Over two thirds of respondents also reported they do not currently have any life insurance, and of those who did, the policy was worth $837,074 on average.
These surveys are a reasonable indication of who is planning for their retirement. I see in my business that generally the lack of planning is a problem. However every year I look at our superfunds under administration and advise them on strategies to increase the end result.
The bottom line is that we do not want our clients to have no plan and they won’t if we are proactive.
I am surprised that 80% have plans for their retirement. The figure would appear to be much higher in SMSF than in the larger funds. The 20% that do not are probably 45 years and below.
Fewer than one third have arrangements with their accountants for financial advice – what a shock statistic. I would be surprised if that figure is over 10%, plus some respondents probably did not understand the meaning of “financial Advice”
No real surprises in the survey. It also reflects that SMSF’s are pretty organised.