And I am ready for it!

If you thought SMSFs were just for retirees with too much time on their hands, think again. At the recent SMSF Association National Conference in Melbourne, Tim Steele, CEO of Class, dropped some serious stats that prove the younger generations - Millennials and Gen X are shaking things up in the self-managed super space. And let me tell you, I’m already all over it.

According to Steele, over 85% of new SMSF establishments in the last six months of 2024 were driven by Millennials and Gen X. Yes, you read that right - 85%! But what really caught my attention was that Millennials’ share of new SMSFs jumped by 5% to 33.6%, while Baby Boomers' share dropped from 17.5% to just 13.4%.

So, what’s going on here? Why are younger Aussies ditching the default super model and opting to take control?

1. They Want Control Over Their Future

Millennials and Gen X don’t trust traditional institutions the way previous generations did. They’ve grown up in a world of financial crises, rising home prices, and, let’s be real, a lot of bad advice from banks and big super funds. So, it makes perfect sense that younger investors are saying, “Stuff it, I’ll do it myself.”

2. They Love a Bit of Tech (and So Do Their SMSFs)

Unlike the SMSFs of the past that ran on mountains of paperwork, tech has changed the game. Automation, AI-powered administration (hello SMSFAI), and real-time investment tracking mean that running an SMSF has never been easier. If you can manage a share portfolio from your phone, why not your super?

3. They’re Investing Differently

They’re not just parking their retirement savings in a standard mix of Aussie shares and cash. Property, ETFs, private investments, especially Bitcoin - Millennials and Gen Y are thinking long-term but playing by their own rules. Plus, ESG investing is a major driver. This generation care where their money is going, and an SMSF lets them invest in ways that align with their values.

4. They're Not Waiting Until They’re 60 to Think About Retirement

Millennials and Gen Y are playing the long game, but they are also thinking about financial independence way earlier than previous generations. Early retirement, multiple income streams, and having real choices in their 40s and 50s - is what's motivating them to take control of their super sooner. The Industry Is Paying Attention Steele’s insights at the SMSF Association conference weren’t just a passing trend - it was a wake-up call for the entire industry. If younger investors are driving growth, super providers, advisers, and accountants need to catch up. The days of one-size-fits-all superannuation are numbered. The future is all about flexibility, tech, and control - and SMSFs tick every box.

At SMSFAI, we see this shift happening every day. Millennials and Gen X are savvy, they want transparency, and they won’t settle for outdated systems. We were the first SMSF Administrator to provide video reporting to SMSF trustees.

If you’re part of this new wave of SMSF trustees - or thinking about making the leap - let’s chat. The future of super is looking very different, and honestly? It’s about time.