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Need For SMSF Specialists Growing


Financial advisers must adapt self-managed superannuation offerings if they wish to keep up with the new generation of SMSF investors, as the latest insight from Commonwealth Bank and the SMSF Association demonstrates an increased need for SMSF specialists.

The CommBank SMSF Report reveals a valuable opportunity for advisers, with 50% of advised and 59% of unadvised SMSFs wanting more support in managing their retirement savings. About 42% of those in the accumulation phase currently operate without a plan for retirement - 41% of which are advised.

The research shows a new wave of investors is challenging the stereotypes commonly associated with SMSF investors. The report identifies four distinct types of SMSF investors: the Outsourcer (13%), Coach Seeker (22%), Self-Directed Investor (30%) and the Controller (35%).

CBA head of SMSF customers Marcus Evans said that as the sector matured, SMSF members have become increasingly diverse.

"While all SMSF investors share a taste for independence and a desire to take control of their own financial destinies, each investor profile has a different level of investment experience and confidence and therefore, different advice needs," Evans said.

From the research, Outsourcers and Coach Seekers are expected to disrupt the SMSF market as they prefer to engage with advisers; Outsourcers generally have low confidence in their financial decision-making and are willing to spend more for advice, while Coach Seekers are eager to learn with the assistance of an adviser.

"The growing pool of Outsourcers could potentially disrupt the market by requesting one-stop shop advice and administration services that take the stress out of active SMSF management," Evans said.

Evans added that Coach Seekers have the highest proportion of younger members, the highest number of females and are most likely to have set up their SMSF in the past two years.

"We expect to see an increase in the Coach Seeker type of investor in the SMSF market over the next few years," Evans said.

The research suggests that as the sector continues to grow, the demand for specialists in the sector will also increase, with key reasons cited for SMSFs needing additional support including their advisers not being experts in particular areas, as well as information being too difficult to understand and conflicting.

"As the SMSF market continues to grow and evolve, product providers and advisers need to adapt. If this new generation of SMSF investors are to access the products and advice they seek, the industry will need to create service offerings that are relevant to each of the investor types and account for their unique preferences," Evans said.

Financial advisers must adapt self-managed superannuation offerings if they wish to keep up with the new generation of SMSF investors, as the latest insight from Commonwealth Bank and the SMSF Association demonstrates an increased need for SMSF specialists.

The CommBank SMSF Report reveals a valuable opportunity for advisers, with 50% of advised and 59% of unadvised SMSFs wanting more support in managing their retirement savings. About 42% of those in the accumulation phase currently operate without a plan for retirement - 41% of which are advised.

The research shows a new wave of investors is challenging the stereotypes commonly associated with SMSF investors. The report identifies four distinct types of SMSF investors: the Outsourcer (13%), Coach Seeker (22%), Self-Directed Investor (30%) and the Controller (35%).

CBA head of SMSF customers Marcus Evans said that as the sector matured, SMSF members have become increasingly diverse.

"While all SMSF investors share a taste for independence and a desire to take control of their own financial destinies, each investor profile has a different level of investment experience and confidence and therefore, different advice needs," Evans said.

From the research, Outsourcers and Coach Seekers are expected to disrupt the SMSF market as they prefer to engage with advisers; Outsourcers generally have low confidence in their financial decision-making and are willing to spend more for advice, while Coach Seekers are eager to learn with the assistance of an adviser.

"The growing pool of Outsourcers could potentially disrupt the market by requesting one-stop shop advice and administration services that take the stress out of active SMSF management," Evans said.

Evans added that Coach Seekers have the highest proportion of younger members, the highest number of females and are most likely to have set up their SMSF in the past two years.

"We expect to see an increase in the Coach Seeker type of investor in the SMSF market over the next few years," Evans said.

The research suggests that as the sector continues to grow, the demand for specialists in the sector will also increase, with key reasons cited for SMSFs needing additional support including their advisers not being experts in particular areas, as well as information being too difficult to understand and conflicting.

"As the SMSF market continues to grow and evolve, product providers and advisers need to adapt. If this new generation of SMSF investors are to access the products and advice they seek, the industry will need to create service offerings that are relevant to each of the investor types and account for their unique preferences," Evans said.


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