Sent: 28-07-2009 12:17:01
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Young people want Self Managed Super Funds too?
Whilst researching for some consulting work I had to review the ATO's Self Managed Super Fund Statistical Report which has been released every quarter for about a year.
One part of the research caused me to look afresh as this data and my client has approved the release of the following information.
It has commonly been assumed that SMSFs are for the middle and older ages and higher net worth individuals but it's not true of funds being established over the last few years.
The ATO's SMSF shows the following trends:
From the "All SMSF" category
- 54% of members are male
- 70% are two member funds
- the taxable income of members are as follows:
- the assets in the SMSFs is as follows:
Interestingly in March '09 data 1.87% of SMSF - about 7,000 funds - had assets of more than $5 million.
In relation to the age break-down of SMSF member funds it might be tempting to argue that in the recent past a noticeable number of younger people are starting their own fund and that older investors are showing less of an inclination to use SMSFs.
In reality it's too early to reach that conclusion because it may be that many older investors set up their own fund before July 2007.
Only time will tell what the real story is but certainly a new trend may be emerging. And if that trend persists the story it tells for retail super funds should be deeply concerning.
What is striking about these numbers is the number of taxpayers with low or moderate taxable incomes who are busy setting up a SMSF. My guess is that most people would have assumed that SMSFs were a toy for the moderately well to do. But based on income you would have assume that this is not the case.
Commentators and marketers wanting to gain access to this segment of the marketplace will have to think carefully about how they talk to this predominantly lower income demographic.
On another note the latest Wharton Business School e-newsletter contains an interesting book review about marketing for financial advisers.
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