The number of people taking control of their financial future continues to expand with the ATO reporting the number of Self-Managed Super Funds grew by 27% last year!
They have also reported SMSF’s now hold over 31% of all super assets in Australia.
Interestingly the number of funds using borrowings (which previously were not allowed) to purchase property increased from 1.1% in 2008 to 3.7%. While still a modest number, it does highlight more people are taking advantage of the law changes to build a property empire within super instead of leaving their money in the volatile share market managed by other people.
Even more notable though is the fact that Member Contributions (contributions made voluntarily and from Members’ personal savings) exceed Employer Contributions (broadly the minimum 9.25% on salary and wages) by nearly two to one! Australians are obviously taking their wealth creation and planning for retirement very seriously. I wonder how much of that is due to concerns over the Federal Governments ability to fund the ever increasing number of retirees versus the desire simply to grow personal wealth in the most tax effective, self controlled manner possible?