The Self-Managed Super Fund Professionals’ Association of Australia (SPAA) has reported a surge in membership applications, ongoing demand for its qualifications and a record number of attendees registered for its 2012 national conference starting in Sydney on Wednesday, 15 February.
SPAA has seen an upswing in members over the past year, taking its membership to over 2350 – an increase of 25 per cent.
A survey of new members conducted by SPAA found that nearly 60 per cent of advisors who joined in the past year had been considering it for some time but saw now as the time to join as the SMSF market continues to surge.
Recent Australian Taxation Office (ATO) figures showed that the self-managed superannuation sector assets grew by double those of total superannuation industry assets over the past five years (122 per cent compared to 60 per cent) to June 2010.
“The growth of SMSFs since late 1990s has been steady with the net number of funds growing at 2500 per month. Not only do we believe that the growth is set to continue, but also that the pace is likely to pick up,” said Andrea Slattery, SPAA CEO.
While SPAA members see further growth for SMSFs over the next five years coming from individuals between the ages of 41 and 60 (78.7 per cent of respondents), they are also gearing up to attract a younger demographic.
Many advisers servicing the SMSF sector say they are now increasingly targeting accumulator trustees.
With the ATO report confirming that some 11 per cent of new SMSF members were under the age of 35 in the June 2010 quarter, this is an inevitable growth segment for SMSFs.
“Individuals are recognising the many benefits of SMSFs, including control and flexibility, will increasingly appeal to younger, highly educated professionals who are already confident about seeking service providers and skilled advisors,” Slattery said.
SPAA has also seen a 62 per cent increase in the number of members completing the SPAA specialisation accreditation in 2011.
Over 50 per cent of members now have accreditation, up from 35 per cent a year ago – an increase SPAA attributes to advisers not wanting to wait for the final outcomes of financial service reform to further advance their level of professional qualification.
“It is important now more than ever to prepare for this growth surge by making sure that there is enough competent and specialist advice available so that more people are able to make informed decisions on their retirement savings,” said Slattery.
The 2012 SPAA Conference takes place at the Sydney Convention and Exhibition Centre from 15 to17 February.
Professional Planner will be well represented and invites all delegates to visit our stand over the course of the three-day event.
The SPAA National Conference program can be found by clicking here.
