Superannuation Leaders Bleed $8 Billion

Key Takeaways

• According to the AFR, Australians transferred around $8 billion out of the country’s largest pension funds over the past financial year, with complacency and disengagement cited as major factors.
• AustralianSuper and Australian Retirement Trust, the two largest superannuation funds in Australia, accounted for about $2.8 billion of that outflow.
• Net transfers to self-managed super funds (SMSFs) rose roughly 40% in the year to 30 June 2025, per analysis cited by the AFR.
• Gold and silver bullion have featured in the shift, with SMSF orders through Ainslie Bullion becoming far more common over the past few years.

According to the AFR, Australians have transferred a whopping $8 billion out of the country’s largest pension funds over the past financial year. Major issues flagged were complacency and disengagement of the funds. It seems that older members with larger balances have opted for more control and financial advice tailored to their situation.

The AFR noted that AustralianSuper and Australian Retirement Trust accounted for about $2.8 billion of the $8 billion outflow. This is significant, as they are the two largest superannuation funds in the country. A figure in the billions making headlines can seem dramatic at first without putting into perspective. This appears to not be the case in this scenario. Analysis cited by the AFR article notes that net transfers to SMSFs increased an astounding 40% in the year to 30 June 2025.

Younger professionals were also given mention in the piece. Doctors, engineers and other professionals who finished university roughly ten years ago appear to be wanting more control of their funds and their futures. The set it and forget it approach is being seen as laziness rather than service. To keep up with clients’ needs, some super funds have offered more service, such as in-house services. This is in response to investors seeking out professional investment advice, wanting to act on it, then their intentions fall on deaf ears.

ASIC has warned investors about setup costs, complexity and risks associated with individuals investing themselves through SMSF structures. This has not seemed to stop professionals and high-net-worth individuals from seeking out tailored financial advice for themselves.

In terms of gold and silver bullion, SMSF orders through Ainslie Bullion just several years ago used to be a small minority. The past few years have been highlighted by SMSF orders becoming dramatically more popular. Solid assets and free unallocated storage with printable online reports have streamlined the process.

Whether someone decides to register an SMSF or not is a big decision, and speaking to a licensed financial adviser, as mentioned in the AFR article, can be a useful step. The potential good news for individuals invested in super funds is that competition may be pushing them to improve services and personalisation for investors.

This article is general information only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial adviser before making investment decisions.