Latest SMSF statistics: 1.1 million members with $869 billion in Super
About 44 per cent of savers starting an SMSF are aged under 45 years, with about one-third of new members aged between 35 and 45 years, according to the latest analysis by the Australian Taxation Office.
Regardless of your age, the advantages of an SMSF are often the same for many people – autonomy, control, flexibility, transparency, stronger investment options than the average superannuation fund, and the ability to be in control of your own financial future.
Younger for longer – almost one in three people opening a SMSF are under 45
“Since the Pandemic and a couple of years of strong investment returns many younger investors are seeing the merits of pooling the family wealth together and taking control of their wealth and investment choices”, says Russell Medcraft CEO and founder of Financial Choice and selfmanagedsuper.com.au . “We are seeing investors come to us and ask if they can invest in Gold, Silver or other exotic investments. The most common choice is the adoption of low cost index funds via Exchange Traded Funds (ETF’s) and then investment properties. Some clients are even investing in on site Caravans.”
What is the average SMSF balance in Australia?
In the 12 months from the 2021 to the 2022 financial year, SMSF assets grew by $25 billion, or 3%. At 30 June 2021: SMSFs had assets of almost $1.5 million on average, up 15% from the previous year and 25% from 2016–17.
Total number of SMSF’s
The windup trend has reversed
As the above table illustrates the number of new SMSF’s being set up has steadily increased over the last three years but the number of closures or windups has reduced dramatically. The proceeds from windups were in most cases transferred to another superannuation or pension fund or paid out to the Estate. The reversal of this trend is further evidence that many trustees of SMSF’s are very happy with the flexibility, transparency and tax advantages of a SMSF when compared against other alternatives like Industry funds and retail super funds.
How much do I need to have in Super before I can set up my own SMSF
The vast majority (86%) of SMSFs in Australia had balances greater than $200,000 in June 2021, as indicated in the table below. This is consistent with the generally held view that it is not cost effective to set up and run an SMSF with less than $200,000.
As our superannuation system matures, the percentage of funds with less than $200,000 is declining. At the other end of the scale, the ATO has only recently started providing figures for funds with $10 million to $20 million in assets, $20 million to $50 million and $50 million-plus.
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