Quality advice should underpin super choice: SPAA.
The $10,200 penalty imposed by ASIC on Media Super is a warning shot across the bows of APRA-regulated funds about their public commentary on SMSFs.
Graeme Colley, Director, Technical and Professional Standards, of the SMSF Professionals’ Association of Australia (SPAA), says it has always been the association’s view that there is room for all superannuation sectors and comparisons between them is an “apples and oranges approach”.
“SPAA’s position is that the right superannuation fund depends on a person’s circumstances, and the best way to determine which fund is the most beneficial is to get professional advice.
“There are many factors to consider such as the stage of your working life, the level of engagement desired and the amount of retirement savings you have in superannuation.
“Some funds may limit membership while others may provide a range of benefits in excess of what you want.
“Why would you want to be a member of a fund that provides mainly pensions to members when you are in your 20s or 30s and have a long time to go before you retire?
“On the other side, if you have retired a fund that provides the majority of its services to members in accumulation phase may not be the right fund for you.”
Colley says for people to make the appropriate choice they need to get objective and unbiased advice from someone who has a broad knowledge of superannuation as well as the ability to analyse the features of the various funds that will work in their situation.
“Your accountant or financial planner who has recognised skills in all types of superannuation funds is the best to assist,” he says
