The research found that SMSF set-up interest is rebounding, with industry fund members showing slightly higher intent – driven more by perceptions around performance than their retail peers.

Of the total SMSF inflows in 2024, 57 per cent reflected rollovers from industry super funds and a further 23 per cent rollovers from retail funds.

The report found that many of those who have set up an SMSF noted they still have a separate super account alongside their own fund, which is primarily to access cheaper insurance coverage, for diversification purposes, and in case they decide to switch back their super in the future.

It also revealed that the number of SMSFs using financial advisers grew to 155,000 in 2024, up from 140,000 in 2023. However, this means 483,000 SMSFs – the vast bulk of the sector – are not using a financial adviser.

Renae Smith, chief of personal investor for Vanguard Australia, said although the SMSF sector continues to grow, the 2025 report highlights that there are significant advice gaps for many individuals operating their own super fund.

“Only 24 per cent of SMSFs currently use a financial adviser, which is not ideal when you think of the many complexities associated with managing superannuation including keeping track of changes in rules and regulations, administration, taxes, choosing what to invest in, and then personal considerations such as retirement income needs and estate planning,” Smith said.

The research also found that advised SMSFs are more likely to report advice gaps around intergenerational wealth transfers (29 per cent) and estate planning (37 per cent).

Newly established SMSFs are more focused on tax minimisation (37 per cent), insurance (26 per cent), and purchasing an investment property (25 per cent) while tax and retirement planning represent the largest cluster of unmet needs, impacting 280,000 SMSFs.

Furthermore, the report noted that the barriers to closing the advice gap remain complex and among advised SMSFs, a lack of holistic advice is increasingly cited (23 per cent, up from 16 per cent), while cost (33 per cent) stands out as the primary hurdle for newly established SMSFs.

“On the bright side, the research found that 34 per cent of unadvised SMSFs now plan to seek financial advice, which is up from 25 per cent the year before,” Smith said.

The report noted that many SMSFs are open to receiving digital advice, highlighting the enormous scope for delivery of scalable, low-touch solutions.