on air now

Self-managed super: Yes or no?

Of Australia’s $2 trillion invested in superannuation, it’s estimated somewhere between a quarter and a third of that money is in self-managed superannuation funds.

But is it the best way to invest your super?

New research by Industry Super (which represents industry superannuation funds) found many people with self-managed funds are doing themselves in the eye.

Ross Greenwood speaks with Stephen Anthony, Cheif Economist at Industry Super.

“We just to point out that this vehicle is very good for high-wealth individuals, but it’s very poor for everyone else,” he says.

“The returns below $2 million in fund size are at least 2.5% below the APRA regulated average.

“So that being the case, it would be much better for those funds to be out outside self-managed super.

“Much better for the country, and much better for the potential retirees.”

In response, Ross Greenwood also speaks with SMSF Association CEO John Maroney.

“I don’t believe that.

He tells Ross he believes there is a “misrepresentation” of statistics in the report and likens it to comparing “apples and oranges”.

He says advice given to self-managed funds is not used in the numbers for APRA regulated funds.

“It’s not a consistent comparison.

The question remains: are you doing the best thing for yourself with a self-managed fund?

Listen to the full interview below