The value of self-managed superannuation funds in Australia has passed $1 trillion for the first time, the Self Managed Super Fund Association (SMSFA) said.
The SMSFA, the peak professional body for the SMSF sector, said statistics from the Australian Taxation Office (ATO) showed this “significant milestone” was passed in the September 2024 quarter.
At 30 September 2024, Australians had $1.02 trillion of their superannuation (pension fund savings) in SMSFs.
At June 2024 SMSFS asset held 25% of the $3.9 trillion of superannuation assets in Australia, exceeded only by APRA-regulated assets of $2.7 trillion, according to data from the Australian Prudential Regulation Authority (APRA).
SMSF Association CEO Peter Burgess said the landmark achievement underscored the confidence of Australians in these types of funds.
“SMSFs can provide the ultimate level of control and flexibility which in-turn empowers and encourages greater level of engagement," Burgess said in a statement.
“This extra flexibility and control can manifest itself in many ways including investment flexibility, estate planning flexibility and the ability to structure the fund in a way which best suits the needs of fund members.
“It’s always been the Association’s mantra that SMSFs are not for everyone. But for those individuals who want to take direct control of their retirement savings, whether in the accumulation or decumulation phase of superannuation, they have proved a very effective vehicle.
SMSFs are private superannuation funds in which people manage and invest their own retirement savings rather than use traditional super funds like industry, public sector, retail and government funds.
Australia has the world’s fourth largest retirement savings pool because of its mandatory system under which employers have been required to put aside a part of an employee’s salary to be invested until they leave the workforce.
The percentage has grown over the last 32 years from 3% to 11% and will rise to 12% next year.