In 2025, the SMSF sector in Australia is witnessing a period of renewed energy, resilience, and transformation. The latest Class Annual Benchmark Report shows a sector not only weathering change but accelerating forward — and for those aligned with its mission, this presents an exciting moment to lean in.

Growth with Purpose

At 30 June 2025, there are 653,062 SMSFs operating in Australia, collectively holding over $1.05 trillion in assets. This is not a static industry - it’s thriving, showing strong fundamentals and sustained confidence. What’s especially heartening: 42,000 new funds were established in FY25, a 6.4% rise and the strongest growth since FY17.

This surge in new establishment signals that more Australians are choosing to take charge of their retirement outcomes - to move from passive to active. It’s a strong affirmation of the value proposition of SMSFs: control, flexibility, and ownership.

Youth + Diversity = Transformation

One of the standout trends in the report is how the SMSF investor profile is evolving. The data shows a shift:

• In the half-year period to 31 December 2024, Generation X (51.9%) and Millennials (33.6%) combined accounted for over 85% of new fund establishments via Class.

• The average age for new members sits around 48 years, notably younger than the average age across the broader SMSF base (61.6 years).

• The average starting balance for new funds has dropped from ~$515,000 down to ~$363,000 — a ~29.4% decline.

These shifts suggest SMSFs are becoming more accessible - not just for those with large balances, but for people earlier in their wealth journey who want more control and flexibility.

The Power of Longevity & Stability

One of the most compelling truths emerging from the data is how SMSFs are working long term. On the Class platform:

• The average SMSF has been established for 15.6 years. Over 66% of funds have operated for a decade or more.

• For many members, SMSFs are not experiments - they are generational vehicles.

• The average fund balance is now ~$1.9 million, and the average member balance ~$990,000.

That kind of endurance builds trust. It tells us: SMSFs are not fleeting — they are foundations.

Challenges = Opportunities

The Report doesn’t shy away from what lies ahead. The potential impact of Division 296 tax changes, liquidity pressures in property holdings, and valuation complexity for direct assets are flagged as key risks.

However, those very challenges invite innovation and strategic adaptation. Trustees and SMSF professionals who anticipate, respond, and evolve will be the ones who lead. In particular, the data points to a gap in advice — around 70% of SMSFs remain unadvised. That is both a warning and a beacon: there’s immense room for trusted guidance to make a difference.

What This Means (Especially for Next-Gen Investors)

For a next-gen SMSF brand or platform, here are the takeaways:

1. Broader Appeal -  Don’t niche only to wealthy older individuals. The new generation is engaging earlier, with smaller balances, and wants tools that match their expectations.

2. Tech + Efficiency Are Imperative - As growth accelerates, the need to streamline operations, offer automation, and reduce friction becomes nonnegotiable.

3. Advisory + Education = Opportunity - With many SMSFs currently unadvised, there is a real purpose (and market demand) for accessible, high-quality guidance.

4. Resilience Matters - This data validates that SMSFs are more than a trend. They’re a resilient, long-term structure capable of adapting to regulatory, demographic, and market change.

In Closing

The 2025 Class Benchmark Report paints a picture of an industry in evolution - not just surviving change, but thriving through it. It’s a sector that’s opening up to new voices, new capital levels, and new expectations.

For those who see SMSFs as more than just a financial instrument - as a statement of control, purpose, and future-building - this is your moment. The runway is long, the climate is ripe, and your financial future awaits.