According to the Australian Taxation Office (ATO), as of March 2021, there were over 1.1 million SMSFs with a total of $747 billion in assets under management (AUM), making SMSFs the largest and fastest-growing superannuation sector in the country.
A recent report by the SMSF Association revealed that SMSF trustees are a diverse group of individuals, spanning different age groups and income levels. The report found that as of 2020, the average age of SMSF trustees was 53 years old, and around 72% of SMSF members were aged 45 years and older. However, the report also showed a slight shift towards younger trustees, with the proportion of trustees aged 25-44 increasing from 18% in 2019 to 20% in 2020.
The SMSF Association report also highlighted that SMSFs have a higher concentration of high net worth individuals compared to other superannuation funds. The report found that the average SMSF balance was $1.3 million, with around 45% of SMSFs having a balance of $1 million or more. In contrast, the average balance for non-SMSF funds was around $71,000.
The ATO has also released data on the investment allocation of SMSFs. As of June 2020, the top three asset categories for SMSFs were Australian listed shares (26.9% of total AUM), cash and term deposits (19.6%), and commercial property (14.6%). However, there has been a gradual shift towards other asset classes in recent years, such as international shares and managed funds.
When it comes to the gender breakdown of SMSF trustees, data from the ATO shows that around 53% of SMSF members are male, and 47% are female. While there is a relatively even split between genders, the SMSF Association report noted that the average balance for male SMSF members was higher than that of female members, with male members having an average balance of $1.5 million compared to $1.1 million for female members.
SMSFs are a popular choice among Australians looking to take greater control of their retirement savings, particularly among high net worth individuals. While SMSFs offer a range of benefits, such as greater flexibility and control over investment choices, it’s important for individuals to carefully consider their options and seek professional advice before deciding if an SMSF is right for them.
References:
Australian Taxation Office. (2021). Self-managed super fund quarterly statistical report – March 2021. https://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/Statistics/Quarterly-reports/SMSF-quarterly-statistical-report—March-2021/
SMSF Association. (2020). SMSF trustee report 2020. https://www.smsfassociation.com/resources/research/
Australian Taxation Office. (2020). SMSF investment patterns. https://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/Statistics/SMSF-investment-patterns/
Australian Bureau of Statistics. (2021). Retirement and superannuation, Australia, 2018-19. https://www.abs.gov.au/statistics/people/people-and-communities/retirement-and-superannuation-australia/2018-19
