SMSF growth to taper off: Dexx&r
The proportion of total retirement incomes funds under management (FUM) held in Self-Managed Superannuation Funds (SMSFs) is set to taper off, as benefit payments exceed contributions, a Dexx&r report indicates.
SMSFs accounted for 62 per cent of total retirement incomes FUM at June 2014, but Dexx&r's forecast predicted a slowdown in the growth of SMSFs, which will see it account for approximately 50 per cent by June 2024.
Data from the Australian Taxation Office revealed that SMSF benefit payment outflows exceeded contribution inflows for the first time in the 12 months to 2013, a trend the report expected to continue. "Contribution flows into SMSFs increased by an annualised average of eight per cent per annum from June 2004 to June 2013," the report said.
"Over the same time benefit payments paid from SMSFs have increased by 24 per cent per annum.
"This differential between inflows and outflows is expected to continue at current levels with the growth of total FUM held in both the accumulation phase and pension phase projected to increase from $557 billion at June 2014 to $865 billon by June 2024."
AUTHOR
Nicholas O'Donoghue
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
