First published in Farm Weekly
The self-managed superannuation fund (SMSF) route is not for everyone.
But a large, and growing, number of Australians have gone down the SMSF road, even if for some the decision might’ve been a wrong turn.
According to a new report published by the Australian Securities and Investments Commission (ASIC), the SMSF sector has grown from scratch in 1999 to represent “a significant segment of the superannuation sector”.
“As at June 2025, the Australian Taxation Office (ATO) estimated that there were 653,000 SMSFs with 1.2 million members,” the ASIC report notes.
Over the 14-year period to December 2024, the SMSF sector grew 48 per cent, or more than twice the rate of the general population increase (of 22 per cent).
Meanwhile, SMSF assets as a proportion of the total superannuation pool (now topping $4.3 trillion) have fallen from 31 per cent in June 2016 to 26 per cent by June this year, the ASIC report says: the statistic implies that the account balance threshold for starting an SMSF has progressively fallen over time.
Having a reasonable account size – rule-of-thumb suggests a minimum of $200,000 – is not the only prerequisite for establishing an SMSF but it is an important factor in determining whether the structure is appropriate as a retirement savings vehicle.
ASIC lists several other key SMSF suitability watch-points including whether the member understands the legal compliance duties involved or has the “time, skills, general interest and experience” to meet those responsibilities.
While choosing the super DIY option is ultimately an individual decision, the majority of SMSF trustees usually seek some kind of advice before making the switch.
However, in a targeted investigation of 100 advisory client files, ASIC found that sometimes that advice has not been fit-for-purpose.
“We identified instances of financial advisers recommending retail clients establish an SMSF when an SMSF was not suitable and was likely to be detrimental to their lifestyle and retirement outcomes,” the regulatory report says.
For those who have any concerns, or second-thoughts, about starting or continuing an SMSF, we’re happy to provide an objective assessment that puts your interests first.
As the ASIC report explains, professional financial advisers “play a crucial role in assisting clients to make a good decision about whether to establish an SMSF”.
“Their professional judgement and advice can be invaluable for clients considering the suitability of an SMSF, including understanding the additional responsibilities, risks and benefits of moving their retirement savings into an SMSF.”
An SMSF might suit you but there’s a wrong way and a right way of finding out.
If you are interested in learning more about whether switching to a self-managed super fund is right for you, chat to your Integro adviser today. If you are not an existing client, get in touch via email at: [email protected].
You can also grab yourself a copy of Farm Weekly to read more insights from our Managing Partner, Justin Gilmour, every fortnight.
