Financial Tools
  Client Portfolio Access
  New Client Kit
  Enquiry / Seminar Registration
Hot Issues
Keeping to super's sole purpose
Good financial planning finally has a value: 23% more in retirement
Taxing times for self-managed super funds
The relationship between SMSFs and their advisers
How family financial planning opened the door to a holistic advice career
Spotlight on your retirement income
Market Update - July 2014
The new 65?
Report reveals 'alarming' super savings stats
Anchors aweigh!
A retiree's choice: super pension or lump sum
Fundamentals for investing success
Market Update - June 2014
Messages Worth Remembering
Workforce rides the 'silver tsunami'
ATO outlines SuperStream concerns for SMSFs
Help investor's to save $82 per week
Super dollars
Market Update - May 2014
Articles archive
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 3 July - September 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 3 July - September 2006
Quarter 2 April - June 2006
Quarter 1 of 2011
Articles
Uninformed and impatient
Perspective on the tragedy in Japan.
The essentials of Corporate cash flow.
Out in the cold (the self employed)
Some terminology explained.
Market Updates - February / March 2011
Improving financial literacy is an objective we should all have.
Why baby boomers face a super sprint
Don't buy yet - first calculate the stock's P/E and PEG ratio
SMSFs:  Age matters
Some more terminology explained
Market Updates  -  January / February 2011
Secure File Transfer
CPI won't stop rate rises, says Economist
Super contender
Super birthday ahead
Some terminology explained
Market Updates -   December / January 2011
SMSFs:  Age matters

By Robin Bowerman
Smart Investing
Principal & Head of Retail, Vanguard Investments Australia
14th February 2011


A third of the members of self-managed super funds are age 55-64 – leaving younger age groups well in their wake.

Indeed, the latest ATO’s Self-managed Super Fund Statistical Report shows that more than half of SMSF members are over 55, almost 21 per cent of members being 64-plus. (See the report).

There is a straightforward explanation for the dominance of age 55-plus members in these funds. Often around age 55, many more people entering the final decade or so before retirement begin to think more closely about where they want to place their super in the years leading to retirement and into retirement.

And by age 55, many members’ super balances have grown to the extent that may make a SMSF financially viable, depending upon their circumstances.

As the Australian population continues to swiftly age, many more people will enter the 55-plus age bracket and perhaps contemplate setting up a self-managed fund, rather than remain a member of a big fund.

Expect the competition from the large funds to intensify as they increase their efforts to stop their bigger-balance members being cherry-picked to shift to self-managed funds.

The ultimate beneficiaries, of course, will be fund members. 

Interestingly, Rice Warner Actuaries published its latest Superannuation Projections Report late last year forecasting that the market share of SMSFs would fall from a third of the total assets in superannuation to 22 per cent over the next 15 years.

The forecast, in part, is based on its view that the heavy cutting of the annual contributions cap on concessional contributions will hinder the build-up of big balances in the future, making new SMSFs less feasible than in the past. Further, Rice Warner expects that more SMSFs will close as retired members enter old age.

There are plenty of people in the SMSF industry who do not agree with the Rice Warner forecast and the debate will rage on.

 

 

 

 

 



19th-February-2011

  Financial Advisor | Financial Planner | Financial Adviser | Financial Planning | Financial Planner Sydney