New SMSF trustees propel uptake of financial advice, but $1 trillion sector still has significant advice gaps
- SMSF numbers are on the rise, with adviser influence growing in new set-ups.
- Some trustees have undertaken major portfolio recalibrations, shifting towards ETFs and stocks.
- A growing number of retirees are pivoting from income generation to capital preservation.
Melbourne, 28 May 2025: The 2025 Vanguard/Investment Trends Self Managed Super Fund (SMSF) Report has found that trustees of newly established SMSFs have been behind a surge in the uptake of financial advice across the SMSF sector.
The 20th annual edition of the report, released today, shows adviser influence is growing in new SMSF set-ups, although the broader SMSF population still has significant advice needs.
The total number of SMSFs climbed from 612,000 at the end of 2023 to a record 638,000 by the end of 2024 following the creation of 25,969 new funds. The combined assets from the new funds, along with strong investment gains over the period, helped lift total SMSF assets to more than $1 trillion for the first time.
The Vanguard/Investment Trends research found that SMSF set-up interest is rebounding, with industry fund members showing slightly higher intent – driven more by perceptions around performance than their retail peers.
Of the total SMSF inflows in 2024, 57% reflected rollovers from industry super funds and a further 23% rollovers from retail funds.
The top motivations cited for setting up an SMSF were more control over investments (65%), achieving better returns (38%), and having greater transparency of investments (31%).
However, many of those who have set up an SMSF noted they still have a separate super account alongside their own fund, which is primarily to access cheaper insurance coverage, for diversification purposes, and in case they decide to switch back their super in the future.
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