Tim Steele
Leading cloud-based accounting and SMSF administration software provider Class today announced updated figures from its Benchmark Report revealing Generation X (51.9%) and Millennials (33.6%) collectively drove more than 85% of new fund establishments for the six months to 31 December 2024, as total value of net assets administered on Class grew by 9.2% to $355.9 Billion across 184,830 SMSFs and 345,570 members.[1]
SMSFs now comprise more than one trillion (25.1%) of the $4.08 trillion superannuation industry.[2]
Speaking at the SMSF Association National Conference in Melbourne, Class CEO Tim Steele said: “We undertook an analysis of data from Class SMSFs for the first half of FY25 which pleasingly shows the sector continues to grow and maintain its resilience. Interestingly, we’ve seen a spike in Millennial establishments which grew at a faster rate than any other demographic, increasing by 5% over the past six months to 33.6% (up from 28.5% as of 30 June 2024).
In contrast, Generation X saw a slight decline from 52.6% to 51.9%, while Baby Boomers experienced a sharper drop from 17.5% to 13.4%.[3]
Jon Howie, Chief Executive Officer of Stake, an investment SMSF administration platform said: “As more Millennials become engaged in investing and increase their financial knowledge, we see demand for SMSFs continuing to grow within this demographic. In addition, continued innovation means the costs and complexity of SMSFs are being reduced, enabling new generations to take charge of their super.”
Growth opportunities for advice
Mr Steele said: “Data from the Class Benchmark Report has indicated that 70% of SMSFs are unadvised as the gap between supply and demand for financial advice continues to grow. We also know the number of trustees accessing financial advice has stayed relatively stable over the past three years.[4]
“So, while accessing advice remains a challenge, increasing productivity for financial professionals through delivering innovative technology solutions presents a significant opportunity for the sector.”[5]
For the 2022-2023 financial year, research commissioned by the SMSF Association into SMSF sector performance shows advised SMSF trustees tend to outperform non-advised funds by 7.6% compared to 6.4% (median rate of return).[6]>
SMSF Association Chief Executive Officer Peter Burgess said these results underline the importance of making advice more accessible.
“The research found financial advisers play an important role in bolstering SMSF returns and helping trustees to avoid investment mistakes.”
Class product enhancements and future releases
Class continues to drive automation and efficiency for financial professionals with recent enhancements including share registry, document feeds, property valuation and title search:
- Enhanced share registry connections – Class now provides monthly holding balances and ownership verification for over 1,600 ASX-listed securities, supported through integrations with BoardRoom, Computershare, and MUFG Pension & Market Services (formerly Link Market Services).
- New property valuation and title search capability – Class has released new integrated property title search and title certificates, and an additional residential property valuation provider.
In the coming months, Class is set to introduce further enhancements, delivering productivity and greater efficiencies for financial professionals:
- New share registry connection – Class is in the final stages of establishing a connection with Automic, and when delivered will connect with all four major share registries to provide accountants and auditors with 99% share market coverage for over 2,100 ASX-listed companies.[7]
- New integrated commercial property valuations.
———
