SMSF (Self Managed Super Fund) is without any doubt, the most popular retirement option among Australians. Mainly because it gives you the full control over the fund assets, investment choices (you decide where, when and how to invest), tax control, cost reduction, etc. This advantage however comes at a cost. You must ensure you are in compliance with all ATO rules and regulations, otherwise you risk losing almost half of your assets, being disqualified as a trustee and fined up to AUD$10, 000 (these will come out of your own pocket).
Any changes in the industry are published quarterly in the ATO SMSF Statistics report. Main focus is put on membership sizes, age of new Smsf members, number of new funds, member demographics, new establishments, windups, total number of SMSFs, etc. According to the latest ATO SMSF statistics report, the total worth of the assets invested in SMSF is around $590 billion, with the most significant growth occurring in the period after June 2014.
ATO SMSF statistics
- According to the September 2015 ATO report, there are over 550,000 SMSF funds set by Australians from different age groups.
- On average, around 36,000 SMSFs are established every year in Australia.
- Self Managed Super Funds make up 29% of all supper assets.
- The 2013-2014 year was the fifth consecutive year of positive returns. The estimate return on assets accounted 9.8%.
- In 2014, for the first time the average assets per fund exceeded $1 million.
- The number of SMSF contributors increased for 25% in the last five years.
- The total worth of the assets of only 22% of the SMSF contributors in 2014, was 26.5 billion.
- The number of self managed super funds and the assets invested has increased for 6%.
- 53% of members were male, while 47% were female. This fact proves that both genders participate actively in setting and running SMSF.
- In 2015, the number of SMSF members reached 1 million.
- 78% of all funds in 2015 were run by individual trustees.
There is no doubt that investing in Self Managed Super Fund has become a trend among Australians who want to secure their retirement future. If you are thinking about setting up your own SMSF, that’s great, but make sure you know what’s involved. For example, you need to decide on the number of fund members and trustees, establish a trust deed, set up a bank account, register with the ATO, create an investment strategy and create a plan for your SMSF wind up. There is also more to consider once you set up. Therefore, it is best to seek professional advice first to see if SMSF is right for you.