Cooper Report Endorses SMSFs

The Copper report into superannuation was released yesterday.  Significant changes were proposed to the default superannuation options provided by employer superannuation schemes, with the proposal to introduce “MySuper” as the default superannuation option for all Australians.  There were also proposals to improve the back office processing.

It was noticeable however, that very little change was recommended for the SMSF sector, confirming once again that the Self Managed Super Fund sector is performing well and serving the needs of it’s members.  In fact it was telling to learn that of the members of the Cooper Review panel, half had SMSF’s themselves, including Jeremy Cooper.  It is little wonder then that the SMSF sector has grown to be the largest sector within the superannuation environment, and continues to be the fastest growing.

With the proposal now to have most Australian’s start their superannuation journey in the very basic, no frills “MySuper”, it may be that the future of superannuation consists of two phases.  In the early years of a persons life, the MySuper option is adequate for their needs.  At some point in their life, when the balance grows to a point where the person starts to take in interest in how much they have, they move to an SMSF, so that they can work towards achieving their particular goals and objectives in a customised way.  I guess this is a bit like motor cars.  Our first car is pretty basic and cheap, then latter in life, we get a car to fit our particular family arrangement or lifestyle needs.