HUB24 unveils SMSF product for younger members

Financial services provider HUB24 has developed a new SMSF services package aimed at younger, advised Australians looking to access the benefits of an SMSF.

HUB24 has officially launched HUB24 SMSF Access, a low-cost, simple solution aimed at advised clients that haven’t previously fit within the traditional SMSF market.

The product, which has been in pilot since October last year, offers a wide range of services including fund set up, administration and audit.

HUB24 executive group strategy Greg Hansen explained that by leveraging the collective capability of the HUB24 Group including the HUB24 platform, Class and NowInfinity, the company has been able to develop a lower cost and more efficient product.

Mr Hansen said there is a large market of younger professionals with higher incomes that have benefited from high levels of superannuation guarantee for some time.

These individuals are also highly engaged with their super, he said.

However, due to ASIC’s previous recommendations around minimum balances and costs, they’ve previously been told by advisers to stay in an industry or retail fund and to make the transition to an SMSF at a later point, he explained.

“From our perspective, that means these individuals are not getting the benefit of an SMSF and they’re also accruing a tax problem in their fund that will grow over time,” he said.

“So, by the time they do make that change to an SMSF, their tax exposure is much higher than it otherwise could be.”

Mr Hansen said the new product aims to address this issue by “incubating younger SMSF clients in an environment that has a couple of guardrails”.

“Investments are restricted to the HUB24 IDPS which allows us to bring a whole range of efficiencies,” he said.

Once the SMSF trustee has decided they want to explore new types of investments, Mr Hansen said they can then move their administration from HUB24 to a traditional accountant.

While previous SMSF product solutions have been targeted at the existing market, Mr Hansen said HUB24 is hoping to grow the market by enabling a new customer segment to access SMSFs earlier through a low cost, simple solution.

“Younger people tend to be very engaged with their superannuation and have a particular interest about ESG and those sorts of outcomes. They want to take control of their super and have control over where its invested,” he said.

“We think self-managed super is the natural home for that sort of investor. So this product is about making it available to them sooner than they would otherwise be able to access it.”

Originally published in SMSFAdviser.
https://www.smsfadviser.com/news/22110-hub24-unveils-smsf-product-aimed-at-younger-members

For media enquiries:
Natalie Pennisi
Senior Communications Manager, PR and Media
03 9275 7835 npennisi@hub24.com.au