Growth in Female- and Millennial-Owned Self-Managed Super Funds

The recent release of the Australian Tax Office’s (ATO) Self-Managed Super Fund (SMSF) statistics has found that between December 2021 and March 2022, the majority of newly established SMSFs were executed by millennials and the balance of female-owned SMSFs is growing more quickly than male-owned SMSFs. The ATO has also reported similar trends over the past three years.

Between December 2021 and March 2022, the ATO reported that 5,871 new SMSFs had been established. Millennials had the highest rate of new SMSF establishment, with a total of 46.8% of new funds established by members within this age range. The highest rates were seen between the ages of 35 and 44 years old, made up of 35.5% males and 37.3% females.

These statistics also present a second key trend that has appeared over the last three years, which is the increase in female SMSF activity. The ATO reported in 2019 that the average five-year balance of female-owned SMSFs had increased by 28%, compared to the balance of male-owned SMSFs, which only saw a 22% increase in the same period. The female average member balance increased to $654,000. There was also a 6% increase in average member contributions by female members compared to an only 5% increase in member contributions from males.

In May 2022, the Australian Prudential Regulation Authority (APRA), who regulates the Australian superannuation industry, released that there was a total of $892 billion in self-managed super fund assets. This indicates that SMSFs make up approximately 26% of the $3,312.5 billion superannuation industry.