New SMSF quarterly statistics highlight continued post-COVID recovery

 

The ATO’s newly released March 2021 quarterly statistical report has revealed the total number of SMSFs will soon hit 600,000, with consistent growth seen across establishments and assets as the industry heads into a post-COVID economic recovery.

 

 

The ATO has released the March 2021 self-managed superannuation fund (SMSF) quarterly statistical report revealing the latest statistics on the SMSF sector.

The report shows that there are now approximately 597,396 SMSFs and an estimated 1,120,936 members. These figures point to overall growth in total fund numbers, which have increased on average by around 2 per cent each year over the last five years. 

The March 2021 quarter saw more than 6,000 new SMSF establishments showing continued growth compared with previous quarters, while wind-ups have also hit record lows with around 240 recorded. Fifty-three per cent of SMSF members are male and 47 per cent are female, while 86 per cent of all SMSF members are 45 years or older.

Total estimated SMSF assets increased by 3 per cent over the quarter, from $763 billion in the December 2020 quarter to $787 billion in the March 2021 quarter. 

The top asset types held by SMSFs (by value) continue to be listed shares (26 per cent of total estimated SMSF assets) and cash and term deposits (19 per cent). 

Asset allocations in LRBAs saw its biggest continued increase of around 7 per cent ever since its numbers stagnated during the December 2019 to September 2020 period.

Non-residential and residential property also saw higher growth in asset allocations compared with December 2020 numbers.

Overseas assets have also seen an increase across the spectrum of shares, property and managed investments. Meanwhile, cryptocurrency assets continued to see a decline compared with the December 2020 quarter and haven’t seen an increase ever since June 2019. 

In the new establishments recorded in the quarter, around 56 per cent of new SMSF members are male and around 44 per cent are female. Individuals aged 35 to 44 make up the majority of most of the establishments, accounting for both male and female. 

Meanwhile, taxable income ranges of the members of SMSFs which were established during the March 2021 quarter show incomes around $100,000 to $150,000 to be the most common for members, accounting around 18.5 per cent.

NSW, Victoria and Queensland continue to remain the top three areas for new funds established. 

This comes as new data was also released by the Australian Prudential Regulation Authority showing total superannuation assets increased by 3.1 per cent for the quarter and 13.9 per cent over the 12 months to March 2021 to hit a record high of $3.1 trillion.

Total contributions into the system remained broadly steady at $121.2 billion for the 12 months to March 2021, increasing by 0.8 of a percentage point compared with the previous year.

Total benefit payments were $18.3 billion for the March 2021 quarter following the conclusion of the government’s temporary COVID‑19 early release of superannuation measure.

A more detailed overview of the ATO statistical report can be found here.

 

 

Tony Zhang
25 May 2021
smsfadviser.com

 

Hot Issues

  • End of year financial strategies

    With the end of the financial year approaching there may be some valuable opportunities worth discussing for you or your family, depending on your personal circumstances.

  • Budget 2021: Retirement Outcomes

    The 2021-22 Federal Budget unveiled a range of initiatives aimed at providing additional flexibility across the retirement savings system.

  • Videos to help understand financial planning topics.

    Often watching a short video is a quicker way to understand what can otherwise be quite confusing. The following titles have just been added to our website and can be accessed at any time and by anyone.

  • SMSFs still on top for member satisfaction

    SMSF members continue to report very high levels of satisfaction with the performance of their fund, according to rolling research.

Read more latest Financial Planning news articles

General Advice Warning

The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Retirewell Financial Planning nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.