Financial Planning

SMSF data reflects advice upside

SMSF advice opportunities

The most recent SMSF statistical overview released by the ATO points to a number of advice opportunities available for superannuants.

The latest ATO SMSF statistics indicate there is a significant opportunities to provide advice to fund trustees and members  given the current superannuation rules and the changes to the system about to be introduced on 1 July, a technical specialist has noted.

The “Self-managed super funds: A statistical overview 2019-20” report released earlier in the year by the ATO revealed both the average and median age for an SMSF member is 61 and this fact, as well as some others, show there are many opportunities for advice practitioners to better their SMSF clients’ retirement savings situation, SuperGuardian education manager Tim Miller said.

“That is a good point because we know they’re in the non-assessable, non-exempt income age bracket, we know we’re past preservation age for those individuals born after 1964 where preservation will be age 60, so that is a great strategic age [for this cohort],” Miller told delegates at a technical seminar today.

“We also know after 1 July this year [these individuals] will be in downsizer territory as well. So having that average and median age at 61 is a beneficial one for us to be able to [implement] many superannuation strategies.”

According to Miller, other figures reinforced the number of strategies in play for advisers to add value for SMSF members.

“The average accumulation balance, or those with no retirement-phase benefits in their super fund, is $431,514 and the median in $213,523. So again that $431,514 is a pretty important number to understand because, one, that [allows] us to potentially use the carry-forward [unused] concessional contributions [rules] and clearly it’s giving us a lot of scope from a non-concessional contribution [perspective as well],” he noted.

“These [statistics] are giving us ample amount of information, [pointing out] all of the strategies available for our clients [to whom] these average/median [figures apply].”

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