About 1.15 million Aussies are managing their own superannuation via a self-managed superannuation fund (SMSF), according to new figures from the Australian Taxation Office.
Nine in 10 SMSFs have just one or two members. Overall, there are 616,400 SMSFs in Australia today.
In the first quarter of 2024, 7,371 new SMSFs were established and 272 were wound up. This left a net increase of 7,099 SMSFs over the quarter, the third-fastest rate of increase over the past five years.
Aussies looking after their own superannuation through an SMSF collectively manage $933 billion in assets. If we strip out the amount they've borrowed, we get a net $896 billion under management.
Aussies can borrow through their SMSFs to buy assets such as residential real estate.
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Average wealth of self-managed superannuation owners
According to the latest full-year financial data published by the ATO (FY22), the average wealth per member is $780,254, and the median is $467,187.
These figures combine contributions over the years and the increase in the value of their assets.
If we look at income data among SMSF members, 22.5% have an annual income between zero and $20,000, 15.3% earn between $20,000 and $40,000, and 13.4% earn between $100,000 and $150,000.
The first two income bands likely reflect retired Australians who are no longer earning high taxable incomes, such as those mainly drawing money tax-free from their superannuation to cover living costs.
Demographic data shows the largest cohort of SMSF members are 75 to 84 years old (15.1% of members) followed by those aged 60 to 64 years (12.7%) and 65 to 69 years (12.1%).
The preservation age for superannuation is between 55 and 60 years, depending on when you were born. The age pension is taxable and the age of eligibility is 67 years.
The third income band likely reflects current workers on high incomes.
Which assets do SMSF investors like most?
The bulk of that $933 billion personally managed by Aussies with SMSFs is invested in ASX shares.
In total, $271 billion is in ASX shares and $16 billion is in international shares.
Cash and term deposits, at $145 billion, are another big category.
There is also $122.5 billion in unlisted trusts and $55.5 billion in other managed investments.
In the property space, SMSF members have $92 billion in Australian commercial property and $50 billion in local residential property.
Debt securities such as bonds comprise $9.5 billion of assets under management by Aussies with SMSFs.
Cryptocurrency was introduced as an investment option for SMSFs in 2019, with $1 billion now invested.
5 most popular ASX shares among SMSFs
According to Super Guide, the most popular ASX stocks among SMSFs are as follows:
