How One SMSF Myth Is Holding You Back

Australia has punched above its weight for a nation of only 25.7m people over the last twenty years. One of the main drivers of this power is our country’s superannuation system. At the end of 2021, Australia’s total pension funds ranked fifth in the world at approximately $3.9t, according to the Thinking Ahead Institute’s annual report. The U.S. was $49t; the UK was $5.4t, and Canada was $4.8t. In other words, pension assets per person sit at $148,000 for the U.S., $80,000 for the UK, $127,000 in Canada, and a whopping $188,000 in Australia.

Despite the significant assets held by Aussies, most choose to give up control. According to the Australian Taxation Office (ATO), less than 5% have a self-managed super fund (SMSF). And yet, their assets account for approximately 25% of superannuation investments. So, why are so few Aussies taking control of their most significant pool of assets?

At Stake, we believe this question is answered by looking at one mistaken assumption.

The Great Misconception

When it comes to self-managed super funds (SMSF), there is the assumption that you need at least $250,000. This, in turn, causes many young investors to believe their age puts a self-managed super fund (SMSF) out of reach.

The main reason Australians believe they need at east $250,000 to run a cost-effective self-managed super fund (SMSF) seems to be the accounting costs. Research conducted by Rice Warner showed that to operate a self-managed super fund (SMSF) with a traditional accountant, the average price per year for accounting was $5,000, but this doesn’t have to be the case.

Pricing You Into The Market

At Stake, the belief that you require $250,000 in superannuation to run a cost-effective self-managed super fund has been busted by Millennials. In fact, as of April 2023 our average customer starts their self-managed super fund (SMSF) with approximately $125,000 in super, and our average customer age is 39.

What’s so different about Stake Super that has allowed us to achieve this?

By adopting technology, Stake has brought down the costs of establishing and managing a self-managed super fund with Stake Super. We have automated the establishment process, annual accounting process, financial statements and reporting, and even included the independent audits in operating your self-managed super fund as part of our annual fee of $990. 

With access to 8,000+ U.S. and ASX stocks & ETFs, cryptocurrencies, property, precious metals, and more, young investors are taking control of their superannuation with Stake Super – Australia’s most hassle-free and affordable SMSF.

Sign up in 5 mins, and we’ll set up your self-managed super fund for you. Learn more about Stake Super here. Switching your SMSF to Stake couldn’t be easier, complete our SMSF transfer form in just 60 seconds.

This is not financial product advice, nor a recommendation that a self-managed super fund (‘SMSF’) may be suitable for you. Your personal circumstances have not been taken into account. SMSFs have different risks and features compared to traditional superannuation funds regulated by the Australian Prudential Regulation Authority (‘APRA’). Stake SMSF Pty Ltd, trading as Stake Super, is not licensed to provide financial product advice under the Corporations Act. This specifically applies to any financial products which are established if you instruct Stake Super to set up an SMSF. When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment and administration of an SMSF under a ‘no advice model’. You will also be referred to Stakeshop Pty Ltd to enable your trading account and bank account to be set up in order to use the Stake Website and/or App. For more information about SMSFs, see our SMSF Risks page.