Self Managed Superannuation Fund (SMSF) statistics released by the Australian Taxation Office (ATO) for the December 2011 quarter which show some slowing in the growth in the sector raise some important questions, according to the SMSF Academy.
“We actually think it’s unlikely that the market has hit saturation point,” said managing director of The SMSF Academy, Aaron Dunn. “The question that needs to be asked is whether the stats are reflecting a current lack of direction on the part of Government and an accompanying loss of consumer confidence in retirement savings policy.”
Mr Dunn said the 2012 Intimate with SMSFs report (the report) from SPAA/Russell research sheds more light on SMSF numbers.
“The report does confirm that new establishments for the December quarter were the lowest since June 2008, when the ATO starting publishing these statistics,” he said, “but on an annualised basis, the 2011 calendar year saw 33,114 new funds established. That’s more than 5% more than the previous year.”
On a net basis, the numbers look even better. “Only 2,769 funds wound up during 2011, so net percentage growth was 67 per cent.”
Mr Dunn also said the growth in younger entrants to the SMSF market presents a great opportunity to advisers.
“Data from the report shows that more than a third – 35.1 per cent – of new members were under the age of 45,” he said. “They represent a great opportunity to advisers who are prepared to deliver education and advice in an engaged way that resonates with this web-savvy group.”
Mr Dunn said scaled advice is likely to be appropriate for this sector of the market. “In my view, the scaled opportunity presents an exciting time ahead for SMSF advisers,” he said.
