Sent: 29-09-2009 12:43:01
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The Real Growth in Superannuation
The media has done its best to comment on the release last week of the ATO's latest statistical snapshot of the Self Managed Super Fund sector.
Also released during the week was quarterly APRA data on the state of all other super fund types. Sometime ago however APRA had released its Annual Statistical Super Bulletin.
The following net contribution flow table for the 2006/07 and 2007/08 years might be of interest:
APRA defines net contribution flows to be personal and employer contributions plus net rollovers & transfers less all benefit payments.
The percentages are calculated as inflows divided by net assets for each category at the beginning of each period.
The Industry and Retail Fund data is taken from APRA's bulletin referred to above and the SMSF stats are taken from the latest data released by the ATO this week.
A bit of care needs to be taken with this data because according to the APRA data all funds which it regulates (retail, industry, corporate and public sector) had net rollovers and transfers in 2007/08 of -$1.6b. That is, in net terms more money was transferred out of these funds that was transferred into them.
According to the latest ATO data on SMSFs they had net rollovers and transfers in 2007/08 of -$3.0b.
It seems strange to me that all funds are said to have have money flowing out to other fund types. I'm sure there will be a perfectly rational explanation for what appears to be a discrepancy.
It is surprising that all the above fund types had such strong inflows in 2007/08 given the uncertain economic environment that applied at the time and after the very strong inflows during 06/07. The strong inflows in that year were of course due to the Costello Better Super transitional measures.
The data for 2008/09 for all types of funds will not be published for sometime by either APRA or the ATO. It will be interesting to see what results these generate especially in the inflow situation. At this point in time the quarterly APRA statistics seem to be showing strong inflows into Industry and Retail funds.
I've always wondered what these inflows would be without compulsory super. Lester's recent articles (including today's) a perhaps saying that the whole retirement construct (ie semi-compulsory taxpayer funded idleness) may be unravelling.
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