Hot Issues
spacer
SMSFs: Our 'hardest' jobs
spacer
ASIC issues alert over big gaps in SMSF trustee knowledge
spacer
Super savings gap for women stuck at 30%
spacer
Statistics for all Australians
spacer
Super set to play bigger retirement role
spacer
Why SMSFs want estate-planning advice
spacer
The power of financial role models
spacer
Assess your retirement financial resources
spacer
Cryptocurrency audits tipped to increase this EOFY
spacer
Time to check your risk exposure?
spacer
Some general interest stats on SMSFs
spacer
Check trust deed to protect super in estate planning
spacer
Survey reveals strong opposition to retirement system changes
spacer
Australia by numbers – Update
spacer
Federal Budget 2018 – Overview
spacer
Your Budget
spacer
4 components of our 2018 Federal Budget
spacer
Tools to help you manage your financial position are available on our site.
spacer
New rules capture SMSFs trading big with cryptocurrency
spacer
Common EOFY slip-ups flagged for SMSFs
spacer
Beware residency rules if moving overseas
spacer
99 pct of SMSFs missing global opportunities
spacer
How to plan for a better retirement
spacer
Australia by numbers - Update
spacer
Determine your retirement goals
spacer
ATO issues update on cryptocurrency compliance traps
spacer
How likely is a global trade war?
spacer
Gig economy spike prompts calls for super policy changes
Article archive
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
Quarter 4 of, 2016 archive
spacer
Investor habits: The good, the bad and the ugly
spacer
Keeping finances in the family
spacer
The inter-generational financial squeeze
spacer
Merry Christmas for 2016, a Happy New Year and a prosperous 2017.
spacer
ATO set to clamp down on range of super issues
spacer
SME retirement plans in jeopardy, research finds
spacer
SMSFs show restraint in hot residential market
spacer
Investment's building blocks - always worth reinforcing
spacer
Warnings issued on traps with CGT transitional rules
spacer
Meet SMSFs' early and late arrivals
spacer
Beware, the ATO is on the hunt for lifestyle assets
spacer
'Brexit means Brexit' means what?
spacer
SMSFs tipped to be hardest hit by pension changes
spacer
SMSF assets hit record, but funds still hoarding cash
spacer
Markets caution advised as economic bubbles loom
spacer
Stretching retirement income
spacer
Some financial terms explained
spacer
Market Update – September 2016
spacer
Checking in on our 2016 economic outlook - and looking ahead
spacer
Making a fairer and more sustainable Superannuation System
spacer
Going undercover
spacer
‘Winners and Losers’ from new super proposals
Meet SMSFs' early and late arrivals

 

You probably wouldn't be surprised to learn that more than 90 per cent of the investors who established SMSFs ....

         

 

....in the June quarter are aged between 25 and 64, as shown in the tax office's latest Self-managed super fund statistical report.

It's logical that fund members are most likely to switch from a large fund to an SMSF when their incomes increase, their assets accumulate and they begin to concentrate more intensely on saving for retirement.

And many fund members within a decade or so of their planned retirement make a decision about how to hold their super for the rest of their working lives and into retirement. This decision may involve changing to an SMSF - particularly if their super assets have significantly grown.

The five peak age groups for new SMSF members in the June quarter were: ages 25-34 (11.2 per cent of new members), ages 35-44 (29.5 per cent), ages 45-49 (16.9 per cent), ages 50-54 (15.3 per cent) and ages 55-59 (12.5 per cent). And almost 8 per cent of new SMSF members were aged 60-64 in the June quarter.

What is particularly interesting are the new members who could be termed SMSFs' outliers in terms of age. These are the individuals who establish their own funds when very young or past traditional retirement ages - sometimes well past.

For instance, 1.5 per cent of new members were under 25 while on the other end of the age scale, 5.2 per cent were over 65 - and of that older group, 0.3 per cent were aged 75-84.

A look at these bare statistics suggest that a small percentage of new SMSF members believe in starting as early as possible in saving for retirement that may be at least 40 years away. Just consider that their super could be compounding in an SMSF for 70 years or so.

And at the other end of the SMSF age range, most of us know retirees who gain considerable satisfaction and enjoyment from guiding the strategies and investments of their SMSFs - often with the help of professional advisers.

Given markedly increasing life expectancies, looking after an SMSF seems to be an increasingly popular retirement pursuit in itself - while perhaps not yet ranking up there with gardening and travel in terms of popularity.

 

Robin Bowerman
08 November 2016
www.vanguardinvestments.com.au