The Australian Taxation Office (ATO)'s September quarter statistics confirm this landmark, instigating a statement from the SMSF Association’s chief executive, Peter Burgess, highlighting the sector's resilience and appeal. According to Burgess, "As at 30 September 2024, Australians have entrusted approximately $1.02 trillion of their retirement savings to SMSFs – a powerful testament to the value of 'choice' and the benefits of SMSFs."
The strength of SMSFs lies in offering individuals enhanced control and customization over their retirement savings, a factor Burgess believes drives higher engagement and involvement from fund holders. Despite criticisms levied against SMSFs for being perceived as costlier and more complex than APRA-regulated funds, advocates showcase compelling evidence to the contrary.
Peter Burgess pointed out that inquiries commissioned by the SMSF Association demonstrated that even with net assets of $200,000, an SMSF can hold its own against APRA-regulated counterparts in terms of cost efficiency and returns. "These were criticisms that the sector – and the Association – took extremely seriously," Burgess noted, adding that it is rewarding to witness research corroborating the competitiveness of SMSFs.
Burgess also emphasized the integral role financial advisers have played over the years in assisting fund members through their unique superannuation paths. Their expertise has become vital to maintaining the sector's reputation and efficiency. Reflecting on the sector's history, he stated, "Over nearly four decades we have seen the emergence of a dedicated cohort of advisers who have played a critical role in guiding SMSF members through their own unique superannuation journey."
The continuous positive evaluations by various superannuation inquiries mark the high standard of professionalism advisers bring when consulting clients. Each inquiry's favorable assessment reflects the robustness and reliability of SMSFs as a sound retirement strategy.
This latest milestone highlights the robust growth and confidence in self-managed superannuation funds, an indication that many Australians find SMSFs a beneficial solution to tailor their retirement savings according to their distinct financial landscapes, even amidst scrutiny and challenges.
