In Australia the modern version of the Self Managed Super Fund was established back in 1999. Unlike a traditional superannuation fund which is managed by professional trustees, as SMSF is – as the name suggests – managed by its members; who act as trustees. It’s the alternative to the ‘mainstream’ superannuation fund that permits individuals to have more direct control of their savings.
According to the ATO, as of March 2023 there are just over 600,000 SMSFs with a total of more than 1.13 million members. The collective value of the assets within these SMSFs is stated to be just under $900 billion. Needless to say the popularity of the SMSF has grown over the past two decades with more everyday Aussies deciding to take charge of the management of their retirement money. And with 87% of SMSF holders being 45 or older it’s indicative of people using this type of super fund as an instrument to supercharge their retirement savings plan.