Self Managed Superannuation For Younger Australians
- Arnold Shields
- Mar 4, 2011
- 3 min read
Updated: Jun 13, 2025
Why SMSFs Aren’t Just for Retirees Anymore
Contrary to popular belief, self managed superannuation funds (SMSFs) are not just for retirees or those nearing retirement. While traditionally dominated by older Australians, there’s a growing trend of younger individuals setting up SMSFs to gain greater control over their retirement savings.
According to the Cooper Review into Australia’s superannuation regime, most SMSF members are aged over 50, despite Australians aged 35 to 60 being at their peak earning capacity. Just 5.5% of SMSF members are aged 35 or younger, even though this age group represents 43% of the total superannuation population. That trend is slowly changing.
The Statistics: SMSF Growth Among Younger Australians
A report from the June 2009 quarter showed that 6,188 new SMSFs were established, with 11.6% of new members under the age of 35. For comparison, just 7.5% were aged over 65. While older Australians, particularly those 55 and over, naturally gravitate toward SMSFs in preparation for retirement, younger Australians are beginning to recognise the long-term benefits of managing their own super.
Why Younger Australians Are Turning to SMSFs
There are several compelling reasons why younger Australians are opting for SMSFs:
Control Over Investments: You get to choose where your money is invested—whether it’s property, shares, managed funds, or other asset classes.
Potentially Lower Fees: SMSFs can be more cost-effective than many retail and industry superannuation funds, especially as your balance grows.
Estate Planning Benefits: SMSFs offer flexibility and control over how your super is passed on, providing peace of mind for your family’s future.
Long-Term Growth: Starting young gives your investments more time to compound, potentially resulting in greater returns at retirement.
Eligibility to Start an SMSF
Anyone over the age of 18 who is not a disqualified person under superannuation legislation is eligible to set up or join a self managed superannuation fund.
Most SMSFs are operated by couples, and the ATO has highlighted that involving younger family members can help ensure continuity, particularly as Australia’s population ages and health issues such as dementia create risks for older trustees.
SMSFs Are Now the Largest Segment in the Super Industry
As of 30 June 2010, SMSFs accounted for $390.8 billion of the $1.23 trillion invested in superannuation, making SMSFs the largest segment in the Australian super industry. With continued growth, this figure has only risen.
Get Professional SMSF Setup and Support
At Dolman Bateman, we specialise in setting up and managing SMSFs for Australians of all ages. Whether you’re a young professional just starting to build your retirement nest egg or someone nearing retirement and looking for more control, we can guide you through the process with expert advice and efficient service.
Call us now on (02) 9411 5422 to take control of your super.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
