SUPDIY037 Am I too young to manage my super? (483 words)

Control and flexibility are two reasons why more young people are considering setting up a SMSF, but many are unaware of how they work and what’s involved. This article discusses what those under 45 should think about before deciding whether a SMSF is for them. It recommends seeking professional guidance.

Self-Managed Super Funds are among the fastest growing superannuation vehicles in Australia and they’re not just for older investors – investment-savvy Millennials are catching on.

The Australian Taxation Office (ATO) reports that significant numbers of people below the age of 45 are investing through Self-managed Super Funds (SMSFs). The proportion of SMSF members in that cohort was around 14.4% over the twelve months to September 2020.

Historically, SMSFs were considered the province of only the rich. However, as set-up fees and running costs decrease, younger people are viewing SMSFs as a viable alternative to industry funds or off-the-shelf retail funds.