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SMSF trustees taking "responsible approach": SPAA
The SMSF Professionals Association of Australia (SPAA) said self-managed super fund (SMSF) trustees are adopting a "responsible approach" towards using their superannuation savings in retirement.
The comments come on the back of Australian Taxation Office (ATO) figures, with director technical and professional standards at SPAA Graeme Colley saying benefit payments from SMSFs averaged $18.9 billion a year in the five years to 30 June 2012.
He said the number is significant because the biggest percentage of these payments are made as allocated or account-based pensions.
"In 2008, all pension payments totalled 64 per cent. But by 2012 this figure had grown to 72 per cent, with the average benefit payment being $99,000 a year and the median payment $52,000 a year.
"From SPAA's perspective this is strong evidence that SMSF trustees are using their superannuation correctly. They are funding their retirement in a responsible way by drawing income streams when they reach retirement."
Transition-to-retirement income streams have grown slowly from 6 per cent of all benefit payments in 2008 to 11 per cent in 2012. Among those SMSF members receiving a benefit payment, the section reporting transition-to-retirement income streams increased to 19 per cent in 2012.
Colley said there are more new SMSFs paying pensions in their first year of operation, with a 15 per cent increase in the number of new funds over the five years to 30 June 2012.
"Our only proviso is that these people appreciate everything that's involved in being an SMSF trustee, and, if necessary, seek professional advice."
SPAA recently dismissed claims there has been irresponsible growth of borrowing within SMSFs, saying although SMSF borrowings grew from 1.1 per cent a year in 2008 to 3.7 per cent in 2012, this represented only 3.7 per cent of the total SMSF asset pool of more than $500 billion.
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