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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.
About The SMSF Academy
The SMSF Academy is a specialist SMSF education and training provider. The SMSF Academy aims to provide the most up-to-date, easily accessible, user-friendly, affordable and best quality online SMSF education for trustees and their professionals. The SMSF Academy also equips SMSF professionals with practical, web-based white label tools that help them attract and work more effectively and efficiently with their clients. The SMSF Academy is the brain child of Solicitor and Director of the SMSF Academy, Ian Glenister and Managing Director, Aaron Dunn, author of the SMSF blog, thedunnthing! and the only educator in the space to have been personally invited by the Chair of the Super System Review, Jeremy Cooper to share his views regarding the Phase Three Issues Paper on Structure, including SMSFs.