The Annual Benchmark Report by Class, an SMSF (self managed super fund) software firm has reported that there is an uptick in the number of younger Australians setting up SMSFs.
The 35-44 year old range is now the most popular group for setting up a fund, as key findings suggest that more funds are being set up and fewer closed, indicating a rise in popularity. Just under 50% of all establishments for FY22 were set up by those in the 35-44 age range.
For the year 2021, just shy of 12,500 net establishments were recorded compared with just 233 in 2018. The average age of trustees at the time of the establishment of the SMSF has fallen from 51 to 46.
Younger trustees are becoming more engaged and are eager to choose their SMSFs in order to make their own investment decisions. The report also saw a doubling of fund establishments with balances less than $50,000 between FY21 and FY22 from 11.8% to 31.09%.
Perhaps this indicates that individuals are becoming more aware of the benefits of compound interest and investing earlier. Making your money work for you is a concept that Accounting Tax Solutions are keen to educate clients on.
If you would like support in establishing your SMSF or are interested in discussing the advantages of one, then do reach out to one of our friendly and informed team members who can help set you on a path to financial freedom.
We take a look at your situation and work with you to help you to reach your goals.
In the report, Stake chief executive, Matt Leibowitz, said that younger people were being more active in making decisions relating to their super.
““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 a SMSF to build retirement assets is not as difficult as it once was.”
Although the average age of all SMSF members is still around 60, the average age of establishment is a year lower than it was 5 years ago and this is a statistics that seems to be steadily dropping over time.
The message of how powerful SMSFs can be in setting people up for retirement is clearly getting out there, which is great to see for the future of Australians.
Contact Accounting Tax Solutions today on 07 5559 1200 or email us at info@accountingtaxsolutions.com.au