Increasing numbers of people under 30 are setting up – or plan to set up – self-managed superannuation funds (SMSFs), according to a new study by Macquarie Bank and the SMSF Professionals’ Association of Australia (SPAA).
The study found that 8.1% of Australia’s adult population intend to set up an SMSF in the next three years. Of that 8.1%, 44% are under 30. Meanwhile, of those who have set up an SMSF within the last three years, 46% are under 30.
This will bust the ‘myth’ that SMSFs are for older, wealthier people who have amassed considerable assets and are close to retirement.
However, this myth remains true for what the study calls ‘established’ SMSFs – those set up three or more years ago. This group represents 10% of the adult population, and 57% of that are over 50. The average wealth in assets, excluding the family home, is $569,000.
While there may be more young people getting on the bandwagon, they remain comparatively wealthy. The average net worth of newly set-up SMSF holders is $457,246, excluding the family home. The assets of those who intend to set one up soon are on average $292,153.
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