Pensions, Retirement, Superannuation

Mixed-phase SMSFs ahead on assets

Mixed-phase SMSFs assets

Mixed-phase SMSFs currently have higher average assets per fund and per member than other accumulation or pension funds, according to Class.

Mixed-phase SMSFs hold more average assets per fund than the combined total of accumulation-phase and pension funds, even though the segment has fewer members than the two single-phase sectors, according to SMSF administration services provider Class.

In its latest “SMSF Benchmark Report”, Class presented data that showed mixed-phase SMSFs had three time the average net assets of accumulation-phase funds and more than twice the assets of pension-phase funds.

The data, which is based off the 170,000 funds administered by Class, showed accumulation-phase funds had $873,000 in average net assets, while pension-phase funds held $1.132 million, compared to mixed-phase funds, which held $2.591 million in average net assets.

As a percentage of net assets, mixed-phase funds held 56 per cent compared to 31 per cent for accumulation funds and only 13 per cent for pension-phase funds, however, mixed-phase funds only had 33 per cent of fund members, compared to 52 per cent for accumulation funds and 15 per cent for pension funds.

Class noted that while accumulation and pension-phase funds were clearly defined by their membership, mixed-phase funds included a range of funds.

“Mixed SMSFs include funds where all members are in pension phase, but some fund assets are held outside of pensions, as well as funds with a mix of accumulation members and pension members. Mixed funds may only have one member if that member has both accumulation and pension balances,” it said.

Mixed-phase funds also led in terms of average net assets per member, holding $1.293 million, while accumulation-phase funds held $459,000 and pension-phase funds held $676,000 per member.

Pension-phase funds did, however, record the highest average age per member at 73, while mixed-phase funds had an average member age of 62, compared with accumulation-phase funds at 52.

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