Young Australians view super as wealth builder
Australians in younger age groups are increasingly viewing superannuation as a tool for long-term wealth accumulation, not just retirement savings, presenting expanded opportunities for advisers amid increasingly detailed tax and regulatory environments.
Record growth in self-managed super funds (SMSFs) indicates this changing attitude, with Gen X and Millennials accounting for almost nine in 10 SMSFs established in FY25.
Gen X represented 45.1 per cent of new establishments during the financial year, while Millennials accounted for 44 per cent, according to the 2026 Class Annual Benchmark Report.
SMSF Association chief executive Peter Burgess said Australians are taking a more active approach to superannuation, incorporating it into their broader wealth strategies.
Burgess noted that people, particularly younger ages, see their superannuation differently now, as a key part of their wealth creation plans, rather than just something to consider at retirement.
Newly established Class SMSFs recorded an average balance of $467,000 in FY25, while SMSFs remained prominent among Australians with higher levels of investable wealth.
The Investment Trends 2025 HNW Investor Report found 69 per cent of Australian high-net-worth investors had an SMSF, representing approximately 525,000 investors.
Division 296 has added another layer to advice needs, with almost 73 per cent of Class SMSFs holding a positive net unrealised capital gains position at 30 June 2026.
Around 8.8 per cent of Class SMSFs had at least one member with a balance above $3 million, while another 9.4 per cent had a member balance between $2 million and $3 million.
As Australians’ superannuation balances grow, the implications of Division 296 could extend beyond members whose balances are already above the $3 million threshold, according to Accurium principal Melanie Dunn.
Dunn noted that balance growth, contributions, asset appreciation, the death of a spouse, and the consolidation of super benefits could bring a broader group of Australians within the measure’s scope over time.
The changes have increased the importance of early advice covering retirement income, contributions, asset ownership, succession planning, and the distribution of superannuation wealth between spouses.
NowInfinity general manager Kate Anderson said digital establishment tools, online research, artificial intelligence, and specialist administration services have made SMSFs easier to establish, but accessibility has not removed the obligations placed on members and trustees.
Anderson emphasized the need to educate clients, members, and trustees about the risks involved in setting up an SMSF, as well as the responsibilities that come with it.
