Record Numbers Turn to Self-Managed Super as Fund Closures Plunge

Data from the Australian Taxation Office (ATO) shows a record number of Australians are opening self-managed superannuation funds (SMSFs), as total assets in the sector surpass $1 trillion.

In the year ending June 2026, 52,020 new SMSFs were recorded, up from 42,336 the year before and more than double the 25,879 recorded in 2021.

At the same time, the number of SMSFs being wound up has fallen sharply.

Only 5,011 exits were reported in the year to June 2026, a decline from 15,149 exits the year before and 19,298 exits in 2021.

Australia now has 680,301 SMSFs, while those aged 35 to 44 make up the largest age group among new SMSF members.

An SMSF is a private superannuation fund managed by its members rather than by a large super fund, although many members still seek the services of accountants or advisers.

Finance expert Shane Shmuel said he believed the growth reflected a desire among Australians to have more control over how their retirement savings were invested.

“People want to decide for themselves how their money is invested, avoiding Environmental, Social and Governance (ESG) or political based policies or investments they disagree with,” he said.

“With added focus on superannuation and hearing about union corruption, investors want to avoid all these issues, and work with a trusted broker on a strategy that works for them.

“It may involve a diversified strategy including Australian and international shares, cash, property funds, bonds.”

SMSF Association CEO Peter Burgess said many Australians wanted deeper involvement in their own financial futures.

“Attitudes towards superannuation are shifting rapidly, with three consecutive years of near-record SMSF growth providing clear evidence of this change,” he said in a statement.

“This trend should come as little surprise. For anyone under 50 in the workforce, compulsory superannuation has been a constant throughout their working life.

“With the superannuation guarantee rate now at 12 percent, retirement savings are building more quickly, and members are taking a greater interest in how those savings are invested and managed.”

On July 1, 2025, the superannuation guarantee rate increased to 12 percent from 11.5 percent.

“For many, superannuation is no longer something that sits in the background but is now an important part of building and managing their overall wealth,” Burgess said.

“The age and income profile of new entrants suggests SMSFs continue to attract engaged Australians with the financial capacity and motivation to actively manage their retirement outcomes.”