SMSF growth extends past COVID roots, signals YoY rebound

Self-managed superannuation funds (SMSFs) may have held the attention of younger generation during the COVID-19 pandemic, but Baby Boomers have since returned to the fold and marked an upswing in trading in the last year.

According to new data featured in AUSIEX’s SMSF Under Advice report, the number of SMSF trading accounts established in the last year on AUSIEX’s trading platform increased by 14.5 per cent year-on-year (YoY) across both the advised and self-directed segments. The data also showed that Baby Boomers now account for more than half of new SMSF accounts, also across both the advised and self-directed segments.

Millennials also accounted for an increase in SMSF account growth, up by 9.8 per cent YoY and mostly attributed to male millennials, according to the report. While Generation X also grew their number of new self-directed SMSF accounts, those held by Generation X women fell YoY.

The report also indicated that advised SMSFs accounted for the majority of new account growth, jumping by 12.3 per cent YoY, with self-directed SMSFs also rebounding by 19.8 per cent.

“We’ve seen advised SMSF accounts grow in number last year, and continue to grow at the start of this year – and trading more actively,” Brett Grant, Head of Product, Customer Experience and Marketing at AUSIEX, said.

“SMSFs traded more in 2024 than they did the previous year, up 7.5% (by number of trades) year on year, found the AUSIEX report. The increase we believe was in part due to increased additional interest in global equities, in particular global equity and US equity exchange traded funds (ETFs).

“These gains [for advised SMSFs compared to non-advised SMSFs] appear to have been supported significantly more diversified holdings, across sectors and securities. This includes an increasing allocation to ETFs – which is a stark difference to non-SMSF accounts and self-directed SMSF accounts which prefer direct equities.

“Despite concerns about the future of the wholesale investor test, the potential Division 296 superannuation tax, compliance requirements and cost of advice concerns, SMSFs remain in favour with distinct groups of investors and advisers who value greater flexibility when it comes to growing and protecting wealth.”