Younger retirement savers fuel self-managed super funds record

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Record numbers, led by younger investors, are taking control of retirement savings. Here’s what to consider before joining the SMSF ... Read More The post Younger retirement…

Self-managed super funds have become more popular, with more people aged under 45 taking charge of their retirement savings. Pic: Getty Images

Younger investors are underpinning a fresh surge in new self-managed superannuation funds as more Australians seek to grab greater control of their retirement savings.

The latest Australian Taxation Office figures show more than 52,000 new SMSFs were started last financial year, while only 5011 were closed, taking the total number to a record 680,301, up more than 12% in two years.

More than $1.1 trillion currently sits in SMSFs, which have evolved beyond just a tool for wealthy savers and business owners, but financial advisers and even the sector’s peak body say they are not ideal for everyone.

Tribeca Financial head of advice Robert Devlin said the strongest force behind the recent SMSF popularity surge had been that more Australians were seeking control.

“People want more say over where their super is invested and, as balances grow, they tend to become more engaged with it,” Devlin said.

SMSF Association chief executive Peter Burgess said savers were seeking greater transparency, and the increase in compulsory super contributions to 12% in recent years is helping to build bigger balances.

The most recent ATO statistics, from 2023-24, put the average super balance at almost $183,000, while recent numbers from financial regulator APRA show the average SMSF balance is currently $1.63m. SMSFs can have up to six members, and more than two thirds of them have two members.

Overall SMSF member numbers have climbed 11.6% to 1.25 million people since 2024.

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