The face of Australia's self-managed super sector is changing. Long associated with retirees and near-retirees, the sector is now being reshaped by a younger, digitally engaged cohort who are setting up their own funds decades before they will draw on them. As of September 2026, the generational tilt among new entrants is one of the clearest trends in the data.

A younger wave of new funds

The numbers tell a striking story about who is joining. Australian Taxation Office data shows those aged under 50 account for nearly 70% of new self-managed funds, while people aged 25 to 44 make up about 40% of all new accounts.

The 35 to 44 age group has become the single largest demographic entering the sector. New members aged 35 to 44 represented 39.1% of total new members, and about six in 10 first-time trustees are aged 35 to 49.

A break from the legacy base

The shift is thrown into relief by the sector's existing makeup. Among the current membership, 85% are aged 45 or older, a legacy of the years when self-managed funds skewed heavily toward those close to retirement.

Research covering the six months to 31 December 2025 captured the change in generational terms, finding that Millennials and Gen X together accounted for 90.3% of new establishments. Industry commentary noted that Gen X and Millennials are now almost level pegging in terms of SMSF establishments. The average age of a new trustee, at 47, sits well below the 61 recorded for existing trustees.

Why the shift is happening

A generational familiarity with Superannuation may be part of the explanation. As one industry association executive observed, for anyone under 50 in the workforce, compulsory superannuation has been a constant throughout their working life.

That lifelong exposure could help account for the confidence younger Australians show in taking a hands-on role. Many have never known a working life without super, and are comfortable engaging with it directly through digital platforms rather than treating it as something to think about only near retirement.

How younger trustees tend to invest

Newer, younger trustees often begin with familiar, accessible assets. They commonly hold shares and exchange-traded funds, and lifecycle data suggests portfolios tend to diversify over time.

For funds established in FY2023, cash and term deposit allocations fell from 33% to 16% by FY2025, while property allocations rose from 28% to 35%. This points to a Diversification journey that unfolds over a fund's early years rather than all at once, though how any individual fund invests will vary.

What younger trustees may wish to consider

Setting up a fund early brings a long runway, but also a long commitment. Trustees are personally responsible for compliance with super and tax law, must meet the sole purpose test, prepare an Investment strategy, keep records and arrange an annual independent audit.

Notably, 98% of new establishments use a corporate Trustee structure, one of several structural decisions that carry ongoing obligations. A self-managed fund involves time, cost and administration, and whether it suits any individual depends on their circumstances. Professional advice may be appropriate.

The bottom line

Younger Australians are entering the self-managed sector in numbers that are steadily Rebalancing its demographics away from a retiree-heavy base. Raised on compulsory super and comfortable managing money digitally, this cohort is reshaping who runs their own fund, even as the responsibilities of doing so remain unchanged.