Super reform impact on gender gap probed

Jigsaw pieces.

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Insights into the average SMSF balances of men and women have been revealed in light of the superannuation reforms’ impact on potentially closing the gender gap, according to a new report.

The Class “September SMSF Benchmark Report”, released today, found that across all SMSFs in all age groups, males hold higher average balances than females, with the largest gap found between the ages of 60 and 80, when men hold up to $150,000 more than their female counterparts.

However, a focus on single-member funds revealed the opposite.

In this group, women hold higher balances than their male counterparts up to the age of 70, when men take the lead.

According to the report, this switch at 70 could be due to women retiring earlier or it could be that older females earned less during their working lives.

When it came to asset allocation preferences, women preferred defensive assets while men leaned towards more aggressive growth assets, it found.

“Super reforms are having a huge impact on the SMSF industry, prompting advisers and their clients to consider strategies that will enable them to remain within the $1.6 million transfer balance cap,” Class chief executive Kevin Bungard said.

“It will also be fascinating to see how the current SMSF gender gap may be affected by the reforms and we look forward to tracking changes over the coming quarters.”

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