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Self-managed super funds (SMSFs) are now firmly embedded in Australia’s superannuation system, so what type of people are attracted to running their own fund?
SMSFs are privately run super funds that can have between one and six members.
At last count, 1.2 million Australians were members of 653,062 SMSFs with total assets of $1.05 trillion. Perhaps you’re one of them or thinking of joining the crowd, but have you ever wondered who is choosing to run their own fund and why?
SMSF member profiles
The most common trait for those deciding to start or join an SMSF is having the motivation to choose and manage their own super investments. But there are differences in the way people go about managing their SMSF investments.
A report by CBA and the SMSF Association broke down SMSF members into the following four investor profiles:
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- The Controller: This is the most common type of SMSF member. They want to have a high degree of control over the management of their fund and investment decision-making. They may seek professional advice, but they are also confident in their own ability to manage their SMSF, especially in relation to investment decisions.
- The Self-directed Investor: This type is less likely to seek professional advice in managing their fund or making investment decisions than a controller. They have a high level of confidence in their own abilities.
- The Coach Seeker: Coach seekers take a moderately active role in managing their SMSF and making investment decisions. They seek professional guidance to help them, but don’t outsource completely.
- The Outsourcer: This type of SMSF member prefers to almost totally outsource day-to-day administration of their fund and investment decision-making to professionals that they hire.
Where do SMSFs invest?
It’s clear that SMSFs are a popular choice for people who want to take control of their retirement savings. So it’s not surprising that SMSF trustees tend to be active investors.
The choice of investments made by SMSF trustees also holds a clue as to why people choose to run their own fund.
SMSF investors overwhelmingly favour direct investment in Australian shares, but they also allocate significant amounts to direct holdings in commercial and residential property, something not available to members of public offer super funds.
The 2025 Benchmark Report from SMSF administration software provider Class found that direct Australian shares were held by 59% of SMSFs that use its software, representing 28% of SMSF assets. Many more hold shares indirectly via managed funds, exchange-traded funds (ETFs) and listed investment companies and trusts.
According to the ATO, which has more comprehensive but less granular statistics, the most popular asset classes as a proportion of the $1.05 trillion in assets held by SMSFs in 2023–24 (the latest statistics available) were:
- Listed shares – 28.1%
- Cash and term deposits – 16.2%
- Unlisted trusts – 12.6%
- Non-residential real property – 10.0%
- Limited recourse borrowing arrangement (LRBA, typically used to invest in residential real property) – 6.7%
- Listed trusts – 6.7%
- Other managed investments – 5.8%
- Residential real property – 5.4%
Collectables and other personal-use assets were a relatively insignificant $633 million. Crypto assets, on the other hand, are growing in popularity, although less than 1% of total assets at $3 billion.
SMSF vital statistics
According to the latest Australian Taxation Office (ATO) statistics, the number of SMSF members and funds continues to grow steadily.
Collectively, as at June 2025, SMSFs held 24.3% of the $4.33 trillion in super assets.
Around 68% of SMSFs have two members, typically an older married couple; 25% have one member, while less than 7% have three or four members. And these percentages have been consistent for many years. In July 2021, the maximum number of members allowed in an SMSF was increased from four to six. Four years later, less than 0.3% of funds had five or six members, indicating there may not be much demand.
Age and gender distribution
The age ranges and genders of SMSF members at the end of June 2025 were fairly evenly spread between the ages of 35 and 84, as indicated in the table below.
The average age for all SMSF members remains around 62, although the highest percentage of new members in the 2025 financial year was in the 35–44 age group, at 37%. Around 18% were 45–49 and 15% were 50–54. And almost 10% of new members were aged 25–34, an indication perhaps of the increasing acceptance of SMSFs as a wealth creation vehicle.
The gender of members is also fairly evenly split, at 52.7% male and 47.3% female.
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Age and gender of SMSF members: All members
| Age range | Male | Female | All members |
| <25 | 0.6% | 0.6% | 0.6% |
| 25 to 34 | 2.7% | 2.8% | 2.7% |
| 35 to 44 | 11.8% | 12.7% | 12.2% |
| 45 to 49 | 9.5% | 9.5% | 9.5% |
| 50 to 54 | 11.7% | 12.1% | 11.9% |
| 55 to 59 | 12.1% | 12.5% | 12.3% |
| 60 to 64 | 12.5% | 12.7% | 12.6% |
| 65 to 69 | 11.4% | 11.6% | 11.5% |
| 70 to 74 | 10.0% | 10.1% | 10.0% |
| 75 to 84 | 14.3% | 13.0% | 13.7% |
| 85+ | 3.5% | 2.4% | 3.0% |
| All ages | 52.7% | 47.3% | 100% |
Source: Australian Taxation Office
There are, however, disparities in the income of male and female SMSF members.
Members by gender and income ranges
The following table provides information on the taxable income of men and women who were SMSF members at the end of June 2025. As you can see, women were overrepresented in the lower income range while men dominated in the higher income ranges. The relatively high number of men and women reporting annual taxable income of $20,000 or less is probably due to large numbers being in the tax-free retirement phase of super.
Members by gender and income ranges
| Income ranges | Male | Female | Total |
| $0 to $20,000 | 14.8% | 19.3% | 16.9% |
| >$20,000 to $40,000 | 11.4% | 15.3% | 13.2% |
| >$40,000 to $60,000 | 9.2% | 13.0% | 11.0% |
| >$60,000 to $80,000 | 7.9% | 10.1% | 8.9% |
| >$80,000 to $100,000 | 7.9% | 8.3% | 8.1% |
| >$100,000 to $150,000 | 17.4% | 14.6% | 16.1% |
| >$150,000 to $200,000 | 11.9% | 8.3% | 10.2% |
| >$200,000 to $500,000 | 13.4% | 7.5% | 10.6% |
| >$500,000 | 4.3% | 1.9% | 3.2% |
| Unknown | 1.9% | 1.8% | 1.8% |
| Total | 100% | 100% | 100% |
Source: Australian Taxation Office
Despite the perception that SMSFs are only for wealthy individuals, around half of all members had taxable income below $80,000.
Superannuation balances
The average account balance of all individual SMSF members in 2023–24, according to the ATO, was $881,495, although this figure is skewed by members with very large balances. The median balance (half of all members have a balance higher and half have a balance lower) is a more modest $529,433. These figures are up 30% and 29% respectively over five years, during a period of strong market returns.
The increase in SMSF balances is reflected in a marked fall in the percentage of funds with a balance below $500,000, as you can see in the table below. Conversely, over the past five years, there has been an increase in funds with a balance between $500,000 and $20 million.
Proportion of funds, by asset range of fund
| Asset ranges | 2023–24 | 2022–23 | 2021–22 | 2020–21 | 2019–20 |
|---|---|---|---|---|---|
| $0 to $50,000 | 5.3% | 5.4% | 5.8% | 5.6% | 6.0% |
| >$50,000 to $100,000 | 2.1% | 2.6% | 2.9% | 2.7% | 3.2% |
| >$100,000 to $200,000 | 5.1% | 5.9% | 6.4% | 6.3% | 7.2% |
| >$200,000 to $500,000 | 16.2% | 18.1% | 19.5% | 20.1% | 22.5% |
| >$500,000 to $1m | 25.2% | 25.0% | 25.0% | 24.8% | 25.1% |
| >$1m to $2m | 23.2% | 22.0% | 21.2% | 21.0% | 19.7% |
| >$2m to $5m | 17.4% | 15.9% | 14.7% | 14.9% | 12.7% |
| >$5m to $10m | 4.0% | 3.7% | 3.3% | 3.5% | 2.7% |
| >$10m to $20m | 1.1% | 1.0% | 0.9% | 1.0% | 0.7% |
| >$20m to $50m | 0.2% | 0.2% | 0.2% | 0.2% | 0.2% |
| >$50m | <0.1% | <0.1% | <0.1% | <0.1% | <0.1% |
| Total | 100% | 100% | 100% | 100% | 100% |
Source: Australian Taxation Office
Although it’s generally advised that the cost of setting up and running an SMSF may not be in the best interests of members with a balance of less than $200,000, it is accepted that some people establish funds with less in the expectation of increasing their balance fairly quickly.
In any event, the message does seem to be getting through. The proportion of SMSF funds with balances of $200,000 or less fell from 16.4% to 12.5% in the five years to 2023–24.
Accumulation and retirement phase breakdown
Around 35% of SMSFs are fully in the retirement phase, while 56% are in accumulation phase. The remaining 9% have a mix of accumulation and retirement phase assets.
Following the rule change in July 2017 limiting the amount that can be transferred into a pension account, funds with wealthier pension members with more than the transfer balance cap (currently $2.0 million) will typically be in a mixed phase.
Mixed SMSFs include funds where all members are in retirement phase but they choose to keep some of their super in accumulation accounts, as well as funds with a mix of retired and non-retired members. Mixed funds may only have one member if that member has both accumulation and pension balances.
The bottom line
The number of SMSFs in Australia has continued to rise in recent years, along with average individual member and overall fund balances. Another trend is the growing number of women and younger people with SMSFs and a tightening of the gap between male and female account balances.
SMSF members are generally attracted by the freedom to choose and manage their own super investments. But there can be significant costs and responsibilities involved with setting up and running an SMSF, so it’s important that the benefits outweigh the costs over the long run.
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