There’s been a lot of media in recent times about the growth in younger entrants to the Self Managed Super Fund market. Much of this discussion has come from the recently updated SMSF statistical summary published by the Australian Taxation Office.
Is this simply a ‘spike’ in the statistics or is it a genuine trend in younger people being attracted to SMSFs? Let’s have a look at some of these quarterly statistics issued by the ATO since June 2009:
| Quarter Ended |
Under 45 years of age |
| 30 June 2009 |
35.5% |
| 30 June 2010 |
35.0% |
| 30 September 2010 |
35.6% |
| 31 December 2010 |
35.2% |
| 31 March 2011 |
39.1% |
| 30 June 2011 |
34.1% |
| 30 September 2011 |
37.6% |
As you can see from the table, we are seeing a sustained trend in new SMSF entrants under age 45 years of age.
What do you think are the reasons behind this trend?
- Is it greater control? or
- Are people taking a greater interest in their super at a younger age? or
- Have people changed because they are not satisfied with their previous fund (e.g. performance and/or fees)? or
- Greater investment opportunities, such as limited recourse borrowing to acquire property? or
- All of the above!!
Are you a younger SMSF entrant? or are you advising younger SMSF entrants? I would love to hear stories why individuals are being attracted to SMSFs at a younger age?
PS. I’ll be presenting on the topic of attracting SMSF business your way at the 2012 SPAA National Conference in Sydney, 15-17 February. Join me for this session as we explore some of these changing trends and how you can leverage new ideas to build your SMSF business…
