If the stats from the ATO are anything to go by (pro tip: they are), your next SMSF advice client could look a lot different than the clients you’ve had in the past.
Late last year the ATO released a longer term statistical overview that reveals some interesting trends. We already knew that the number of SMSFs was growing, hence the need for better advice. But average assets per fund (and per member) have grown too. And that’s not even taking in to account investment growth for the last couple of years. For example, for SMSFs established in 2015, the average fund assets were 15% higher than funds established in 2011. Member contributions are on the rise too (up 52%), so we can probably infer that the new breed of SMSF member has income (employment or business) that allows them to keep adding more to their FUM.
Men still make up most of the population of SMSF members – but only just, at 53%. The women who are in SMSFs are doing somewhat better than their male counterparts; the average female member balance is up 24%, compared to 17% for men. The median age of new members is down, especially compared to the median age of all members (48 vs 59).
It’s possible that this new client will have a higher risk tolerance, too – possibly a result of their younger age bracket. The stats on asset allocation suggest that SMSFs are moving away from the safety of cash and term deposits. Assets held in cash have gone down around 2% per year for the past few years.
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