The number of SMSFs using a financial adviser increased in 2024 as the size of the sector reached record levels, but the gap between trustees receiving advice and those acting without it continues to remain large, according to new figures released today.
The 2025 “Vanguard/Investment Trends Self Managed Super Fund Report” found that as the total number of SMSFs increased from 612,000 at the end of 2023 to a new high of 638,000 by the close of 2024 – an increase of around 26,000 new funds – more funds were relying on financial advice.
According to the report, which surveyed more than 1500 SMSF trustees, 155,000 funds were using a financial adviser in 2024 compared to 140,000 in 2023, which left 483,000 SMSFs, up from 475,000 in 2023, operating without advice.
Vanguard Australia chief of personal investor Renae Smith said despite the growth of the SMSF sector, the report showed a significant advice gap for many individuals operating a fund.
“Only 24 per cent of SMSFs currently use a financial adviser, which is not ideal when you think of the many complexities associated with managing superannuation, including keeping track of changes in rules and regulations, administration, taxes, choosing what to invest in, and then personal considerations, such as retirement income needs and estate planning,” Smith said.
The research found established and new SMSFs had differing advice needs, with the former looking for assistance with intergenerational wealth transfers and estate planning, and the latter focused on tax minimisation, insurance and purchasing an investment property.
Smith said the barriers to closing the advice gap were not simple and advised SMSFs cited a lack of holistic advice as a problem, while cost was a key hurdle for newly established funds.
“On the bright side, the research found that 34 per cent of unadvised SMSFs now plan to seek financial advice, which is up from 25 per cent the year before,” she said.
Drivers for people moving into an SMSF from an industry or retail fund included control over investments, achieving better returns and greater transparency of investments, with 57 per cent of rollovers coming from industry super funds and a further 23 per cent from retail funds.
The report added many of those who had set up an SMSF retained a separate super account alongside their fund, often to access cheaper life insurance coverage, for diversification purposes or in case they wanted to move out of their fund in the future.
