Australian small to medium-sized business owners are increasingly uncertain on whether superannuation will provide sufficient retirement savings to live on.
This is leading more SME owners down the self-managed superannuation (SMSF) path, according to the thinkBIG 2014 survey by accountants RSM Bird Cameron.
They say: “Why contribute more into superannuation – who knows what rules will be in place by the time I retire?”
The survey shows more than 90% anticipate that interest rates will either remain constant or increase, a sentiment which may be a result of observed increased activity and recovery in the marketplace.
And 64% of Australian SME owners anticipate growth in the next twelve months and 46% reported revenue growth in the last twelve months.
About 48% of SME owners currently have a self-managed super fund (SMSF).
Andrew Graham, national head of business solutions at RSM Bird Cameron, says SME owners continue to see the benefits that come from a self managed fund in terms of flexibility and control.
“With continual tightening of the age pension and health care card systems, people need to be more proactive and in control of their retirement destiny, which may be driving them to SMSFs,” he says.
“This reflects the continued changes in taxation of superannuation. While contribution caps have finally increased, the constant changes to superannuation laws and proposed changes to the age pension undermines people’s confidence in the system as a whole.”
The thinkBIG survey spoke to 504 business in 2014 compared with 308 in 2013.
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