Millennials driving SMSF establishments – | Australian Markets

Self-managed superannuation funds now account for more than a quarter (25.1%) of the Australian superannuation industry, in response to the latest Benchmark Report from specialist administration software program supplier, Class Tremendous.

The identical report has additionally revealed that after many years of dominance by child boomers, it’s now Millennials and Technology X who’re driving SMSF institution.

Nonetheless practically three-quarters of the SMSFs have been unadvised.

The Benchmark Report, launched at this week’s SMSF Affiliation national convention, revealed Technology X (51.9%) and Millennials (33.6%) collectively drove more than 85% of new fund institutions for the six months to 31 December 2024, as complete worth of web property administered on Class grew by 9.2% to $355.9 Billion throughout 184,830 SMSFs and 345,570 members.

Class chief govt, Tim Steele mentioned the report was drawn from evaluation of information from Class SMSFs for the primary half of FY25.

He mentioned it was pleasing to see that the sector continues to grow and preserve 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% over the past six months to 37.3% (up from 32.6% as of 30 June 2024),” he mentioned.

“In contrast, Generation X saw a slight decline from 60.97% to 60.34%, while Baby Boomers experienced a sharper drop from 21.17% to 15.75%.”

Steele confirmed the attain had indicated that 70% of SMSFs are unadvised because the hole between provide and demand for financial advice continues to grow.

“We also know the number of trustees accessing financial advice has stayed relatively stable over the past three years,” he mentioned. “So, while accessing advice remains a challenge, increasing productivity for financial professionals through delivering innovative technology solutions presents a significant opportunity for the sector.”