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Experiences of current and former members of self-managed superannuation funds

Author

Listed:
  • Susan Thorp

    (Discipline of Finance, The University of Sydney Business School, The University of Sydney, Australia)

  • Ron Bird

    (Finance Discipline Group, UTS Business School, University of Technology Sydney, Australia)

  • F Douglas Foster

    (Discipline of Finance, The University of Sydney Business School, The University of Sydney, Australia)

  • Jack Gray

    (Finance Discipline Group, UTS Business School, University of Technology Sydney, Australia)

  • Adrian Raftery

    (Deakin Business School, Deakin University, Melbourne, Australia)

  • Danny CS Yeung

    (Finance Discipline Group, UTS Business School, University of Technology Sydney, Australia)

Abstract

We surveyed 854 current and 147 former members of self-managed superannuation funds (SMSFs) in 2016. The results of our survey document their aspirations, operational practices and experiences. Both current and former members expressed high general interest in superannuation, but ‘detractors’ of SMSFs outnumbered ‘promoters’. SMSF members said they enjoy ‘control’ of investment, but a majority delegated tasks to financial professionals. Three times as many members rated the performance of their fund as above the SMSF average as below, although most did not measure the performance of their fund adequately. The probability of closing a SMSF is significantly higher if members use net returns, rather than other indicators such as account balance, to judge performance. JEL Classification: H55, H75, J32

Suggested Citation

  • Susan Thorp & Ron Bird & F Douglas Foster & Jack Gray & Adrian Raftery & Danny CS Yeung, 2021. "Experiences of current and former members of self-managed superannuation funds," Australian Journal of Management, Australian School of Business, vol. 46(2), pages 304-325, May.
    • Handle: RePEc:sae:ausman:v:46:y:2021:i:2:p:304-325
    DOI: 10.1177/0312896220936338
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    References listed on IDEAS

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    1. Daniel Fernandes & John G. Lynch & Richard G. Netemeyer, 2014. "Financial Literacy, Financial Education, and Downstream Financial Behaviors," Management Science, INFORMS, vol. 60(8), pages 1861-1883, August.
    2. Hazel Bateman & Jeanette Deetlefs & Loretti I. Dobrescu & Ben R. Newell & Andreas Ortmann & Susan Thorp, 2014. "Just Interested or Getting Involved? An Analysis of Superannuation Attitudes and Actions," The Economic Record, The Economic Society of Australia, vol. 90(289), pages 160-178, June.
    3. Peter J. Phillips & Alex Cathcart & John Teale, 2007. "The Diversification and Performance of Self-Managed Superannuation Funds," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 40(4), pages 339-352, December.
    4. Zaichkowsky, Judith Lynne, 1985. "Measuring the Involvement Construct," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(3), pages 341-352, December.
    5. Ron Bird & F. Douglas Foster & Jack Gray & Adrian M Raftery & Susan Thorp & Danny Yeung, 2018. "Who starts a self-managed superannuation fund and why?," Australian Journal of Management, Australian School of Business, vol. 43(3), pages 373-403, August.
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    Cited by:

    1. Geoffrey Kingston & Susan Thorp, 2019. "Superannuation in Australia: A Survey of the Literature," The Economic Record, The Economic Society of Australia, vol. 95(308), pages 141-160, March.
    2. Ron Bird & F. Douglas Foster & Jack Gray & Adrian M Raftery & Susan Thorp & Danny Yeung, 2018. "Who starts a self-managed superannuation fund and why?," Australian Journal of Management, Australian School of Business, vol. 43(3), pages 373-403, August.

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    More about this item

    Keywords

    Financial advisors; financial literacy; household finance; pensions; self-managed superannuation funds;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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