The latest sector analysis has found a younger cohort of Australians again dominated SMSF establishments in the six months to December 2024.
The updated “Class Benchmark Report” revealed more than 97 per cent of SMSFs set up during this period were done so by generation X superannuants, 60.3 per cent, and millennials, 37.3 per cent.
“We undertook an analysis of data from Class SMSFs for the first half of FY25, which pleasingly shows the sector continues to grow and maintain its resilience. Interestingly, we’ve seen a spike in millennial establishments, which grew at a faster rate than any other demographic, increasing by almost 5 per cent over the past six months to 37.3 per cent (up from 32.6 per cent as of 30 June 2024),” Class chief executive Tim Steele told delegates at the SMSF Association National Conference 2025 in Melbourne today.
While the data showed generation X establishments actually fell slightly from 60.97 per cent to 60.34 per cent, fund set-ups from baby boomers dropped most dramatically, from 21.17 per cent to 15.75 per cent.
Stake chief executive Jon Howie echoed the findings, acknowledging the experience of his investment platform reflected a very similar pattern.
“As more millennials become engaged in investing and increase their financial knowledge, we see demand for SMSFs continuing to grow within this demographic,” Howie said.
“In addition, continued innovation means the costs and complexity of SMSFs are being reduced, enabling new generations to take charge of their super.”
The report also highlighted the unmet advice needs of trustees, with only 30 per cent of this group currently receiving financial advice.
According to Steele, this presents an opportunity for advisers servicing the sector.
“While accessing advice remains a challenge, increasing productivity for financial professionals through delivering innovative technology solutions presents a significant opportunity for the sector,” he noted.