Control freaks – SMSFs take charge for a happier future

When it comes to being ‘super’ happy in the future, having control of their retirement funding is putting those with a Self-Managed Super Fund (SMSF) ahead of the rest. This is according to the 2013 RaboDirect National Savings and Debt Barometer which shows that respondents with an SMSF were not only happier but were in better health than those with another form of superannuation.

According to Greg McAweeney, Group Executive Manager of RaboDirect, being in control of their financial future is clearly a big driver for respondents with an SMSF. Noting that SMSFs are a rapidly growing segment of Australia’s retirement savings pools; Mr McAweeney said that the health and wellbeing benefits as suggested by the NSDB results are a compelling reason that many are turning to this option.

“While a Self-Managed Super Fund isn’t for everyone – you need a certain level of knowledge, money, time and interest to do it well – there is clearly a keen interest and appetite among Australians for this hands-on control of super and ultimately their retirement. In fact, our research shows that 14% of the nation researched SMSFs online last year.”

“Regardless of where people currently have their super invested, we could all take a cue from SMSF investors by taking a more proactive approach to our financial outlook. By actively taking control of our finances, we may get some of the peace of mind and health benefits that SMSF investors enjoy. Whether that means simply starting a budget, or moving your money from a low interest account, to a true savings account, there are steps to take to be more in control of our financial future.”

“When it comes to getting your super under control, start by consolidating any super accounts and tracking down any lost super via the Australian Taxation Office. Then look at your total superannuation balance and how much you are currently contributing. Once you know this, you can also consider how your super is being invested and whether you can contribute more to your account each year. And if you are happy leaving your super to the professionals, you can apply the same suggestions to your savings account and overall savings goals.”

Mr McAweeney went on to say that with the cash hub being central to any SMSF, there are a number of key considerations that apply to those with an SMSF as well as to everyday consumers looking to make the most of their savings. Not least of which is ensuring you use the right vehicle or product to make the most of your hard earned savings.

“Just as most people have a savings account as a core financial product, the cash hub remains central to any SMSF. When interest rates are historically low, as they are now, it is even more important that investors get the most from that cash hub account. This means doing the adequate research to find a product that will ensure they are maximising returns.”

“A typical SMSF holder is attracted by choice as much as control. They should look for market-leading online savings and term deposit options or other high-interest accounts that offer flexibility and no fees. At the end of the day, being in control often means making decisions – so arm yourself with as much information as possible to ensure you make the right financial decisions.”