The rise occurred as financial markets recovered in the second half of the year, after funds copped the blow of the COVID-19 crisis.

Total SMSF assets had slipped by 0.1 of a percentage point in the 2020 year to $764.2 billion.

The dwindling payments from the early release scheme saw benefit payments drop to $21.3 billion in the December quarter, in contrast to $33.9 billion in the three months before. 

But benefit payments for the 2020 year were $113.3 billion, a 39.4 per cent surge on the year before, including around $36 billion being withdrawn under the early release scheme. 

Total contributions increased by 1.9 per cent during the year, although annual member contributions of $22.9 billion were 6.4 per cent lower than the previous year. Employer contributions had still increased by 4.1 per cent.

Net contributions as a result were positive for the quarter, at $8.3 billion, although they were 80.9 per cent lower compared to 2019, at $7.7 billion for the year. 

Around $2 trillion was held in APRA-regulated funds, up by 3 per cent from the year before, while $812.2 billion resided in MySuper products, an increase of 1.3 per cent year on year.