SMSFs are being targeted by property marketers, but is a single, illiquid investment a good super strategy, with its associated leverage? ASIC is worried SMSF trustees are not seeing the full picture, so we went looking.
Tag Archives | Australian superannuation
Major institutional asset managers struggled to meet their long-term return objectives last year, and conditions are not expected to improve. But the market usually throws up opportunities to outperform.
Australian superannuation funds have experienced almost double the growth of their global counterparts in the last five years, with 16 funds appearing in the top 300 by total assets.
Although nothing clear has been announced, adverse changes are coming to superannuation, especially for people with large balances. And they want retirees to spend more, not leave bequests.
The Government and industry are looking for ways to improve our superannuation system. The Swiss have been looking after other people’s money longer than anyone.
A survey of high net worth people – those who would be adversely affected by a tax on super earnings in pension phase – showed many were willing to accept such a policy, but not without a healthy level of qualification.
David Murray and Don Russell spoke at a leadership forum as part of the SMSF Association’s 2015 Conference on the future of Australia’s retirement income system. They included many valuable insights.
Much attention has been drawn recently to the high cost of the Australian superannuation system compared with pension systems overseas, with retirement outcomes often overlooked. What should we be striving for?
Australia has a world-class superannuation system, but it is also the most complex. From insurances to estate provisions to the many different forms of contributions and withdrawals, we should try to ‘keep it simple’.
A suggestion from the Grattan Institute that Australia’s superannuation system could use Chile’s default fund auction method to create competition between funds and reduce fees has generated a lot of media attention.
Every SMSF owner should take an interest in David Murray’s Financial System Inquiry because it asks some fundamental questions including issues around limitations, tax breaks, contribution limits and more.
Australia’s defined contribution superannuation market seems to be obsessed with ‘liquid’ investments. For the long-term investment that super inherently is, it doesn’t make sense to limit our options.
The recent budget has highlighted the importance of superannuation in supporting the age pension system. Why then, would the Government want to remove many of the incentives for building a healthy super balance?
* Roy Morgan Research says almost 7% of investors in retail super funds are ‘very likely’ to switch to another fund in the next year. Here’s the chart featuring all major super providers.