What is an SMSF?
A self-managed super-fund (SMSF) is essentially a "DIY super".
Unlike traditional super funds managed by professional superannuation companies, a self-managed super - fund (SMSF) is where you and other members of the fund act as trustees. This means you're responsible for making decisions about how your super is invested, how it's managed, and ensuring it complies with all legal and regulatory requirements.
The Rise of SMSFs
Self Managed Super Funds (SMSFs) are gaining popularity among Australians who want more control over their retirement savings. Although only about 5% of the population has an SMSF, these funds manage approximately $900 million, which is 27% of the $3.3 trillion in total superannuation assets.
SMSF Establishments and Windups (2019-2023) The number of SMSFs being established each year has generally outpaced the number of windups, leading to steady growth in the total number of SMSFs. The chart below illustrates the trend over the past five years:
Age Distribution of New SMSF Members
Contrary to popular belief, SMSF establishment isn't limited to older Australians. Over 36% of new SMSF
members are between 35-44 years old. About 65% set up their SMSF before age 50.
This trend suggests younger Australians are taking active roles in retirement planning. It highlights a
growing interest in financial literacy and investment control across age groups.
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