SMSF establishments have seen further growth in the 2021–22 income years, with younger trustees driving the trend, according to the latest ATO statistics.
The ATO has published its SMSF statistical report for the June 2022 quarter with the total number of SMSFs now at 603,432. This represents a 4.4 per cent jump in the total number of funds since June 2021.
Total members of SMSFs increased from 1,075,799 at June 2021 up to 1,123,430 at the end of 2021–22.
The 2021–22 income year saw further growth in SMSF establishments with a total of 27,713 funds established during the year. This was the highest number of establishments since the 2016–17 income year when 30,282 funds were set up.
The majority of new funds are being established by younger trustees with individuals under 50 accounting for 59 per cent of new set ups.
The 35 to 44 age group accounted for almost a third of new establishments alone at 32.2 per cent.
The statistics also indicate that around a third or 33.7 per cent of all SMSF members are under the age of 55.
In its recent 2022 Class Annual Benchmark Report, software provider Class noted that the average age at establishment has fallen from 51 years back in 2006 down to age 44.
It also noted there has been a significant spike in fund establishment during the 2022 financial year for funds with balances of less than $50,000.
Commenting within the report, Stake chief executive Matt Leibowitz said while SMSFs may have traditionally been set up by older Australians, there continues to be significant growth in fund establishments among younger, self-directed investors who want more control over their superannuation.
“We’re seeing firsthand that younger people are more active in making decisions relating to their super compared to previous generations of the same age,” said Mr Leibowitz.
“They feel empowered to make their own investing choices for the benefit of their retirement. They have access to more information about SMSFs and the financial markets than ever before. In this digital age, establishing an SMSF to build retirement assets is not as difficult as it once was.”
Source: SMSF Advsier