Self-managed super funds are now being created faster than ever, with around 14,500 new funds established in the September quarter alone, based on data drawn from hundreds of thousands of accounts tracked by a major administration platform and official tax records. This surge is happening as money steadily flows out of the largest industry super funds, with earlier research suggesting close to $150 million a day is leaving the biggest players. The trend reflects growing appetite for hands-on control and more tailored investment options, even as regulators keep warning that DIY super is not a straightforward choice.
Behind the scenes, the sector has swollen to about $1.07 trillion in assets as at 30 September, representing roughly a quarter of Australia’s $4.5 trillion superannuation pool. At the same time, the average starting balance for new self-managed funds has slipped from around $537,000 in the previous financial year to about $469,000 in 2025, which points to more modest investors entering the space. The main areas new funds are favouring are cash and fixed interest, direct property and Australian shares, with exchange traded funds making up roughly 8% of new investment by value. Experts within the administration sector suggest younger investors from Generation X and the millennial cohort are increasingly driving growth, helped by better technology and lower set up costs, even though these funds often carry higher responsibility and complexity than traditional super products.
Looking more broadly, the boom in self-managed super appears to show that Australians want greater control, more choice and less reliance on large institutions, but it is also testing the boundaries of financial advice and regulatory protection. The corporate regulator has already said that a majority of advice files it reviewed did not fully meet best interest obligations when recommending these funds, which raises questions about whether all new entrants truly understand the risks, time commitment and investment knowledge required. At the same time, around 80% of new funds are being set up without a licensed financial adviser directly involved, often using corporate trustee structures that may involve accountants, online platforms or artificial intelligence tools. The outcome could be a more flexible and personalised retirement system, yet it also leaves room for costly mistakes if investors underestimate what running their own super fund really involves.
