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Book a FREE consultation
and receive your complimentary eBook

Get started with a free strategy consultation and receive a copy of the Good Fortune Guide – written by James McFall, Managing Director Yield FP and 2020 National Finalist Certified Financial Planner of the Year to help educate you on your Financial Plan.

Should I Set Up A SMSF?

Find out why SMSF is the biggest super sector in Australia right now

A question we are often asked is “Should I set up a SMSF?”; this article will inform you of the details of SMSF, provided with the most recent figures possible.

With over $650 billion dollars of Australian funds invested in Self Managed Super Funds (SMSF), it is by far the largest super fund segment of choice. SMSF currently makes up 25% of the total superannuation pie and dwarfs its next closest rival, retail super funds, valued at less than $600 billion each – according to SuperGuide.

SMSF is a private super fund option that allows up to four members to bring their super together for a common investment purpose. Typically, they are used by married couples, but we’ve seen them used between business partners and family units, including children. The benefit of this pooling effect can be that a more expensive investment is affordable, for example – property.

Each year, the Australian Taxation Office releases statistics on the SMSF sector and the most recent relates to 2017/18. You might be wondering – why so old? The reason is because SMSF’s have to lodge a tax return like we do as individuals, and therefore returns are not typically collated until the following years. The average assets per member, in regards to the most recent annual figures from the 2017/18 financial year, is $678,621.

The median age of trustees in 2017/18 is 59 years. It is interesting to note the trends of the age groups opening SMSF’s; the following graph reflects a typically younger demographic who are currently more inclined to set up a SMSF.

Yellow line bar indicates all SMSF members – Source ATO.

SMSF’s are a super investment of choice for many Australians, because they give the most control and flexibility, they can be the least expensive fund to run, and with rapidly moving technology, they are becoming simpler to manage. 

This translates into a vast majority of satisfied SMSF members, as reported by Roy Morgan’s 2020 Superannuation Satisfaction Report, with 72.3% of people being satisfied in their fund. This is the second-highest satisfaction level, just under Public Sector Funds with 72.7%.

Coupled with this, the investments available on the ASX that offer simple, diversified and low-cost access to investing, are just some of the reasons SMSF’s are becoming more popular and worthy of consideration. 

Yield Financial Planning Is Here To Help

With the above in mind, whether you should set up a SMSF is not a decision to be made lightly – so you should speak with a Financial Planner to work out whether SMSF is an appropriate option for you.

Furthermore, to learn more about SMSF, download our eBook below.

Pro’s and con’s of SMSF

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Important Note
Any information provided here is general advice only and does not consider your objectives, financial situation or needs. This information should not be taken as comprehensive and does not constitute legal or financial advice. You should seek legal, financial or other professional advice before relying on any content. Yield Financial Planning is not responsible to you or anyone else for any loss suffered in connection with the use of this information. Information is only current at the date initially published.
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About Yield - Financial Planner Melbourne

Who we serve – We help time poor professionals and business owners who intuitively know they should be doing more to improve their financial position and are seeking an expert to guide them on financial planning strategies. Our clients want personalised financial planning advice and to feel empowered and confident that they can achieve a secure transition to retirement.

What we do – We gain a deep understanding of your current financial position and preferences, what you value and want to achieve. We then help you develop a highly personalised financial plan, to show you how to make your money work harder for you. Ongoing we regularly monitor and measure progress against your plan projections, to show you how you’re tracking and help you manage change to your advantage.

How we do it – We apply our proven expertise in investment markets (Shares & Property), Tax and Debt structuring, Retirement Planning, Risk management and Estate planning, to help you reorganise the way you use your money to achieve your desired outcomes.

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