POWERED BY MOMENTUM MEDIA
SMSFs appealing to younger members
The average one-member self-managed superannuation fund (SMSF) has a starting balance of around $225,000, in line with traditional wisdom that a quarter of a million is needed to set up an adequate SMSF.
The age of new SMSF members was also decreasing, research from Class found, with average age at establishment of 48.9 years old coming in below the 2012 average of approximately 50.
“One factor that may see this trend continue is the proposal to increase the Superannuation Guarantee from its current rate of 9.5% by half a percentage point from July 2021, until it hits 12% in 2025,” Class said. “This will enable the younger workforce to accumulate greater super balances at a younger age over time.”
The average age at establishment was slightly different between male and female SMSF members of one year, with starting balances of men being 42 per cent higher. This gap narrowed with time however, as the average gap between men and women’s balances for 21 per cent in favour of the former.
The research also showed that the over 72 per cent of SMSFs were established as two-member funds, which Class said showed the importance of considering overall fund balance when determining the viability of setting up an SMSF.
The average fund balance on establishment was $406,000, with two-member funds having a shade above that, three-member funds clocking initial balances over $500,000, and four-member funds coming in at half a million.
The research was based on data from 26,1000 SMSFs comprising of 46,943 that were established from 2014 – 2018.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
