Young Australians increasingly opting for self-managed super funds

More young Australians are choosing self-managed super funds (SMSFs) for their retirement savings. This trend shows that age is not a barrier to starting an SMSF. SMSFs allow members to have control over their investments. They can pool balances from up to six members, which increases investment opportunities. One big advantage of SMSFs is the ability to invest directly in both residential and commercial property. However, there are strict rules on using these properties personally. Investment in cryptocurrencies through SMSFs is growing quickly. Currently, this investment is worth over $1.6 billion, up 576% since March 2021. SMSFs can also invest in private equity, listed shares, and collectibles like fine art and vintage cars. While most SMSF members are over 50, younger people can also benefit. Business owners, high-income earners, and those with significant super balances can find SMSFs useful. For example, a business owner can buy commercial property through an SMSF and lease it to their own business, which helps grow their retirement savings. Furthermore, young Australians can team up with family or friends to pool resources in an SMSF, making it easier to seize investment opportunities. Recent data shows that 47% of new SMSF members in late 2024 were aged between 25 and 44. In conclusion, if you want more control over your investments, an SMSF might be right for you, regardless of your age. It's wise to consult a financial adviser before making major changes to your superannuation.