Q+A: Record numbers are setting up SMSFs - and they’re getting younger
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What record number of new SMSFs was set in the last financial year?
Welcome to Fear and Greed QA, where we ask and answer questions about business, investing, economics, politics, and more. I'm Sean Aylmer. Self-managed super funds have hit another record with more than 680,000 SMSFs now holding more than $1.1 trillion in assets. According to the CLAS 2026 Annual Benchmark Report, more than 52,000 new funds were established in the last financial. Year, the highest number on record. This episode was recorded at ClassIgnite 2026. Proud supporters of this podcast. I'm joined by Tim Steele, CEO of Class. Hello, Tim. Thank you, Sean. Peter Vergis, CEO of the SMSF Association. Hello. Hello, Sean. And Meg Hefron, Managing Director of Hefron. Hello, Meg. Tim, let's start with the headline number.
More than fifty two thousand new SMSFs were established last financial year. What's driving the growth?
Oh look, clearly Australians are keen to take control and interest and engagement in their super and SMSFs are proving to be a really attractive vehicle for the right people at the right stage of their life. Why the acceleration do you think at the moment? Yeah, it's something that we've been thinking about and certainly whilst we don't look at the qualitative insights, we do look at the quantum what's what's actually occurring and we we saw for the first time we actually tracked where's the flow of assets into SMSFs. So we saw that just over 57% of flows into SMSFs over a four-year period ending in FY26 were coming from industry funds.
Why are Gen X and Millennials driving the surge in SMSF establishments?
And so it proves that maybe people are sort of growing their super to a certain point where they feel they maybe wanted a different investment strategy or as I said to take more control or have greater engagement with their super. And so they choose to establish an SMSF.
So without putting a value judgment on industry or retail funds at all, is it that flexibility you think that people like the idea of moving to an SMSF?
I think it's something that can grow with them over time as their their assets grow and in their super, as their potentially their needs become more complex, and certainly does give them a range of options. But I think really it keeps coming back to this concept of flexibility and control.
Peter, Gen X, millennials, they accounted for almost ninety percent of new SMSFs. Does that change the way we should think about what an SMSF is?
I think it does. I I think, you know, people's attitudes towards superannuation are changing. Uh we talked about the figures, fifty-two thousand self-money super funds established in the last financial year. And that's off the back of two previous financial years where we saw exceptional growth. So we've seen three consecutive years now of extraordinary growth in our sector, something we've never seen before. So so clearly something is changing here. And you know, people are seeing superannuation now as not Something that they just engage with as they get close to retirement. They're seeing it as an integral part of their wealth creation plan. And that's not surprising, I don't think. When you think about someone that's under 50 that's in the workforce, they've only ever known compulsory supernuation, and at 12%, their balance is growing quickly.
So they want more control, they want more say over how it's managed and how it's invested. It's encouraging. It is. It's exciting.
How much money is flowing into SMSFs versus out, and where does it go?
They're being more engaged with how they invest their super, how they manage their super.
Okay. Something I didn't mention ask you about, Tim, like the money going in versus the money coming out of s SMSFs, it's almost two to one or thereabouts.
Yeah, our analysis showed two and a half times as much is flowing in than is going out and quite differing sources and destinations. So I I touched on the industry funds. W we found that just over two thirds of funds were flowing out were going to retail platform funds, which probably implies there's been a role of an advisor, even though we haven't specifically tracked that as part of this report.
Okay. Meg, I want to bring you into this. I'm interested in your take on the patterns, the flow of funds and what it means about retail funds.
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Chapters
8 chapters
1
What record number of new SMSFs was set in the last financial year?
0:05–1:32
2
Why are Gen X and Millennials driving the surge in SMSF establishments?
1:32–3:10
3
How much money is flowing into SMSFs versus out, and where does it go?
3:10–4:52
4
What is the “magic” asset balance where an SMSF becomes cost‑effective?
4:52–6:22
5
How do regulatory changes and mandatory education affect new SMSF trustees?
6:22–7:41
6
Why are SMSFs considered a unique vehicle for couples to manage super together?
7:41–9:09
7
What impact are limited‑recourse borrowing arrangement (LRBA) restrictions having on property investment?
9:09–11:01
8
How are SMSF members engaging with advice and pension strategies as they age?
11:01–12:08
Speakers
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