Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Vanguard

  •   28 May 2025
  •      
  •   

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.

See full media release

 

  •   28 May 2025
  •      
  •   
banner

Most viewed in recent weeks

Australian stocks will crush housing over the next decade, 2025 edition

Two years ago, I wrote an article suggesting that the odds favoured ASX shares easily outperforming residential property over the next decade. Here’s an update on where things stand today.

Building a lazy ETF portfolio in 2026

What are the best ways to build a simple portfolio from scratch? I’ve addressed this issue before but think it’s worth revisiting given markets and the world have since changed, throwing up new challenges and things to consider.

Get set for a bumpy 2026

At this time last year, I forecast that 2025 would likely be a positive year given strong economic prospects and disinflation. The outlook for this year is less clear cut and here is what investors should do.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

Property versus shares - a practical guide for investors

I’ve been comparing property and shares for decades and while both have their place, the differences are stark. When tax, costs, and liquidity are weighed, property looks less compelling than its reputation suggests.

10 fearless forecasts for 2026

The predictions include dividends will outstrip growth as a source of Australian equity returns, US market performance will be underwhelming, while US government bonds will beat gold.

Latest Updates

Economy

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

Superannuation

No, Division 296 does not tax franking credits twice

Claims that Division 296 double-taxes franking credits misunderstand imputation: franking credits are SMSF income, not company tax, and ensure earnings are taxed once at the correct rate.

Investment strategies

Who will get left holding the banks?

For the first time in decades, the Big 4 banks have real competition in home loans. Macquarie is quickly gain market share, which threatens both the earnings and dividends of the major banks in the years ahead.

Investment strategies

AI economic scenarios: revolutionary growth, or recessionary bubble?

Investor focus is turning increasingly to AI-related risks: is it a bubble about to burst, tipping the US into recession? Or is it the onset of a third industrial revolution? And what would either scenario mean for markets?

Investment strategies

The long-term case for compounders

Cyclical stocks surge in upswings but falter in downturns. Compounders - reliable, scalable, resilient businesses - offer smoother, superior returns over the full investment cycle for patient investors.

Property

AREITs are not as passive as you may think

A-REITs are often viewed as passive rental vehicles, but today’s index tells a different story. Development and funds management now dominate earnings, materially increasing volatility and risk for the sector.

Australia’s quiet dairy boom — and the investment opportunity

Dairy farming offers real asset exposure, steady income and long-term growth, yet remains overlooked by investors seeking diversification beyond traditional asset classes.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.