March 7th, 2013 | Financial Planning, Investment Advice, Self Managed Superannuation
Super funds are no longer viewed as an investment vehicle for individuals either in or approaching retirement. The next decade in the superannuation segment will be Gen X and Gen Y’s as they build for their retirement.
Australia is currently experiencing a massive demographic shift as the baby boomer generation moves into retirement, with more Gen X and Y investors seeking more control of their super and lower fees.
Stellar growth for Self Managed Super Funds (SMSFs) is continuing unabated, following the recent release of December ATO figures confirming a 7.8% rise in both SMSF funds and memberships over the previous 12 months. Based on these figures, this means that a net 3,000 SMSFs are being established every month – that’s 100 daily and around 4 every single hour!
So what, or whom, is driving this? Apparently it’s the Gen X and Gen Y investors who now make up 71% of new SMSF members. Although members 55 years or older make up 61% of all members, current figures suggest that younger, financially savvy and upwardly mobile wealth creators are now embracing SMSFs.
This spike in SMSF growth is a positive sign that superannuants are choosing to take more control of their super, rather than leaving their savings with a fund manager.
For more information on Self Managed Super Funds and their benefits, go to our Self Managed Super Funds page to read more, or feel free to read some of our SMSF blogs in our Financial Planning News section. Our published editorials on SMSFs can also be found in our Editorial Featuressection.
Quinn Financial Planning has the expertise to help you build your wealth. For more advice on investing in a Self Managed Super Fund, contact Peter Quinn here at Quinns by submitting an online enquiry or calling us on +61 2 9580 9166 to book an obligation free appointment.
The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.