SMSF growth to climb among younger investors
The continued overall growth of self-managed superannuation funds (SMSF) will fall away in the next five years despite more funds being set up by trustees aged 30-50 years old.
The fall in proportion of superannuats looking to establish was around five per cent according to the SMSF Professionals’ Association of Australia (SPAA) which released the statistics as part of its fourth annual survey on the state of the SMSF sector.
SPAA conducted the survey in conjunction with Russell Investments and stated that while the proportion of superannuants establishing an SMSF over the next five years would drop from 17.3 per cent to 12.3 per cent, the overall number of non-trustees likely to set up and SMSF was strong at 14.3 per cent.
SPAA and Russell stated in the report, titled “Intimate with Self Managed Superannuation”, that most of the growth would take place in the 41-50 year old age group, followed by the 31-40 year old age group.
The growth figures for the 30-50 year old age brackets were reported by financial planners who stated they were expecting greater demand from the two age groups for advice on SMSFs.
“It is this younger demographic that has exhibited strong growth over the past three years. They are interested in the longer term and have a good understanding of the short-term issues versus the longer term opportunity,” the report says.
SPAA chief executive Andrea Slattery said the growth projections indicated that younger people wanted to have control over their retirement incomes and the popularity of SMSFs remained high, as seen by the overall growth in funds under advice, accounts and fund members.
However the report also found the SMSF sector had been hit by the lower levels of contribution caps and ongoing constant legislative change. As a result of these factors the report stated that for the fourth consecutive year SMSF trustees had under-invested in their future retirement by $16 billion a year.
The fall in proportion of superannuats looking to establish was around five per cent according to the SMSF Professionals’ Association of Australia (SPAA) which released the statistics as part of its fourth annual survey on the state of the SMSF sector.
SPAA conducted the survey in conjunction with Russell Investments and stated that while the proportion of superannuants establishing an SMSF over the next five years would drop from 17.3 per cent to 12.3 per cent, the overall number of non-trustees likely to set up and SMSF was strong at 14.3 per cent.
SPAA and Russell stated in the report, titled “Intimate with Self Managed Superannuation”, that most of the growth would take place in the 41-50 year old age group, followed by the 31-40 year old age group.
The growth figures for the 30-50 year old age brackets were reported by financial planners who stated they were expecting greater demand from the two age groups for advice on SMSFs.
“It is this younger demographic that has exhibited strong growth over the past three years. They are interested in the longer term and have a good understanding of the short-term issues versus the longer term opportunity,” the report says.
SPAA chief executive Andrea Slattery said the growth projections indicated that younger people wanted to have control over their retirement incomes and the popularity of SMSFs remained high, as seen by the overall growth in funds under advice, accounts and fund members.
However the report also found the SMSF sector had been hit by the lower levels of contribution caps and ongoing constant legislative change. As a result of these factors the report stated that for the fourth consecutive year SMSF trustees had under-invested in their future retirement by $16 billion a year.
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