Latest SMSF Trends

Class have just released their Annual Benchmark Report and the SMSF sector is thriving, with women leading the charge.

There are now more than 605,000 SMSFs in March 2022 worth $892 billion, according to the Australian Taxation Office’s SMSF quarterly statistical report. This represents 26% of the $3.4 trillion super sector.

The reason for SMSF establishment remains consistent – the desire for more control over investments.

Younger Australians are now exercising their right for control with more than a third of the SMSFs set up during 2022 established by the 35-44 age bracket.

The average age of establishment has fallen from 51 years to 46 years.

Female members are making more non-concessional contributions than males. This is likely to be a result of funds adopting balance equalisation strategies, where one member, typically with a higher balance will take a balance from their super, and give it to their partner, by way of a recontribution.

Females are also contributing more towards their concessional cap; further proof women are taking more control of their retirement savings and finances.

Female balances have grown faster than males since 2017, outperforming them by 4%.

15% more females than males are making downsizer contributions.

Cash continues to be the most popular asset class followed by Australian listed securities.

70% of SMSFs consist of two members.

While SMSFs have traditionally been set up by older Australians, we’re seeing continued growth in SMSF setup among younger, self-directed investors.

We’re also seeing among our own client base, an increase in younger Australians, with what would typically be regarded a low balance, take control of their super because they want to be more engaged with it.

Further fuelling growth is the poor performance of the super sector in FY22.

For a copy of the Annual Benchmark Report please contact Karen Dezdjek via email at [email protected]

Karen Dezjek is Bell Direct’s SMSF Expert, and she is in charge of our SMSF Admin Service provided by our SMSF admin partner, ExpertSuper.