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1 hint and 3 truths about superannuation

Key & keyhole with light

A lot of our enquiries for fact sheets or seminars are based around superannuation. It’s a tricky area for both advisers and clients to wrap their heads around the many rules, risks and opportunities.

I’ve outlined a few home-hitting truths below, followed by my key hint on how to best help your clients navigate this complex wealth creation strategy.


Truth 1
There are over 500,000 SMSFs in Australia, with approximately $440 billion under management in those funds – indicating that the average amount under management in each SMSF is $880,000.

Truth 2      
There are approximately 1000 SMSFs in Australia with more than $10 million in managed funds, and up to 6000 with between $5 million and $10 million. This means that there are a lot of funds with significantly less than the above estimated average of $880,000.

Truth 3
47% of Australian couples and 78% of singles over 40 don’t have enough funds to retire.

This article explains the troubling situation that couples in Western Australia (no doubt reflecting the rest of the nation) need approximately $1 million in superannuation and savings to retire comfortably – a target the majority of us fall far short on.

A study by REST Industry Super also revealed that 30% of young people are hoping for an inheritance to fund their retirement; however superannuation is improperly accounted for in many people’s Estate Plans leaving family members somewhat short-changed.

Your Hint:    
Superannuation is just a wealth creation strategy that the informed will take advantage of, and the uninformed won’t. Education is key.

Our role as advisers is not only to assist our clients with wealth creation for retirement (through investment and insurance), but just as importantly to educate the uniformed about the opportunity that Super is and then how to secure this asset for the benefit of their family.

We are here to support you in educating your staff or clients on the ins and outs of superannuation and other Estate Planning, Business Succession and legal issues. We are available to present complimentary in-house training seminars on a topic of interest to you; simply contact Emily O’Brien at emilyo@redchip.com.au to express your interest.

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