A new report on self-managed super funds in retirement shows that just over half of SMSF trustees have a written financial plan.
The study from Vanguard and Rice Warner also found only 37% of the survey’s 320 respondents have plans that detail a draw down strategy from their retirement income.
“Preparing a sound asset allocation plan and sticking to it over the long term can greatly assist investors to stay on track given the very human tendency to react to market noise,” Vanguard principal and head of market strategy and communications, Robin Bowerman said.
Despite this, the findings were generally positive, with 90% of respondents saying they were comfortable with their current financial position – 85% of whom expect to be comfortable over the next five years.
“It is clear that retired SMSF trustees like what they are doing. They are happy with their performance and have a positive outlook for their retirement,” Senior consultant at Rice Warner, Alun Stevens said.
“Interestingly only one respondent nominated longevity as a concern and less than 25% were concerned about their income lasting for life. Larger account balances appear to contribute to the positive outlook.”
The report also showed trustees are keeping a keen eye on investment risk, with 94% listing this as their main concern.
“Despite concerns about investment risks, there has been a big move from cash to managed funds and direct equities since the last survey. Investors are clearly more comfortable with the markets and keen to grow their assets for the future,” Stevens said.