DIY superannuation savings accounts 'gaining popularity'

Monday 23 November 2009

Article by Mozo

More people are opting to have a DIY superannuation savings account, according to a new report.

Drawing on figures published by the Australian Taxation Office, News Limited pointed out that this is an emerging trend in the sector, with some $330 billion-worth of these assets currently in existence.

There are now 400,000 self-managed funds, according to the body, with double the amount of members.

Offering advice on setting up such an arrangement, PKF partner Tony Simmons suggested having at least $200,000 to begin with, since fees can be detrimental to smaller funds.

"There are a number of fixed costs associated with self-managed superannuation funds that can often cause them to be more expensive at the lower end of the financial scale," he said.

Meanwhile, normal savers have been advised to put more away in their high interest savings by Westpac managing director Gail Kelly recently.

She explained that this is necessary in order to avoid another economic downturn on the scale of the recent financial crisis.

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