For many Australians, a self-managed super fund (SMSF) offers something that is difficult to find elsewhere: control. You decide how your retirement savings are invested, when assets are bought or sold, and how your retirement planning is managed.
It is easy to see the appeal and why the SMSF sector continues to grow. According to the Australian Taxation Office, there are now more than 646,000 SMSFs holding an estimated
$1.01 trillion in assets, with 85% of members aged 45 or older.
But while many people focus on the investment flexibility an SMSF provides, fewer consider what it takes to keep running one after they have retired. Good financial planning means
thinking about this well in advance, because retirement does not reduce your responsibilities as a trustee. If anything, the administrative burden and compliance obligations can become more challenging as you get older.
Retirement does not mean the paperwork stops
Many people assume that once they are retired and drawing an income from their SMSF, most of the hard work is done. In practice, trustees remain responsible for ensuring their
fund continues to meet its legal obligations each year. That includes maintaining accurate financial records, preparing annual financial statements, lodging tax returns and arranging
an annual audit. Trustees must also review and document the fund’s investment strategy, ensure pension payments meet the minimum withdrawal requirements and keep all trustee
records up to date.
These tasks may be manageable while you are working and actively involved in your finances. They can become more burdensome as retirement planning progresses, particularly if health issues arise or your priorities shift. A Gold Coast financial adviser can help you assess whether the structure still works for your circumstances.
Compliance is not optional
Beyond the administrative load, there is also the matter of compliance. One of the biggest misconceptions about an SMSF is that once it is established, it largely runs itself. The
administration is only part of the story.
The ATO regularly reminds trustees that managing an SMSF comes with ongoing legal responsibilities. Trustees are responsible for complying with superannuation legislation,
regardless of whether they use accountants, administrators or other professionals to assist them.
Rules also change over time. Contribution caps, pension requirements, reporting obligations and other aspects of superannuation legislation can change, requiring trustees to stay
informed. Keeping up with those changes requires ongoing attention, particularly during retirement when your focus has shifted from accumulating wealth to generating a sustainable income. This is where working with an experienced financial planner can make a real difference.
Failing to meet your obligations can result in penalties, additional costs or compliance issues that may have been avoidable.
Decision fatigue becomes more noticeable in retirement
Beyond compliance, there is also the ongoing burden of investment decisions. Running an SMSF means making ongoing investment decisions. Should you rebalance your portfolio? Is your current asset allocation still appropriate? How much income should you draw each year? How will market volatility affect your retirement income over the next decade?
These are important decisions, and unlike during your working years, there may be less time to recover from significant investment mistakes. Sound financial planning can help you build a framework for these decisions so you are not making them in isolation.
Many retirees also find that managing complex financial matters becomes less appealing as they age. Some simply want to spend more time travelling, enjoying family or pursuing
hobbies rather than keeping up with legislation and investment markets.
Control is valuable, but there comes a point for many people where the responsibility feels like more of a burden than a benefit.
An SMSF does not insulate you from life’s surprises
On top of the financial complexity, retirement also tends to bring personal changes that can affect how manageable an SMSF feels. A spouse may become ill. One partner may pass
away. Adult children may need financial assistance. You may decide to downsize or transition into aged care.
These events can add another layer of complexity to managing an SMSF. If one trustee becomes unable to manage the fund due to illness or declining capacity, decisions may
need to be made about enduring powers of attorney, trustee arrangements and the ongoing management of the fund.
These are not situations most people expect to face, but planning for them before they occur can make a considerable difference. A Gold Coast financial planner can help you work
through these scenarios as part of a broader financial plan.
Reviewing your strategy with fresh eyes
Taken together, these responsibilities raise an important question. Many retirees continue managing their own SMSF successfully for years. The question is not whether you can do it. The question is whether you still want to carry the responsibility, and whether you are confident your retirement planning strategy continues to reflect your changing circumstances.
As retirement progresses, priorities often shift. Generating reliable income may become more important than pursuing higher investment returns. Estate planning, tax efficiency and
ensuring your savings last throughout retirement can also become greater priorities. Regularly reviewing your strategy with an experienced adviser can provide confidence that your financial plan continues to support the lifestyle you want.
How RFS Advice can help with financial planning
This is where having the right support can make all the difference. Whether you manage your own SMSF or hold your superannuation elsewhere, retirement planning is about much
more than choosing investments.
At RFS Advice, financial planning focuses on helping clients build strategies that continue to work as life changes. For retirees and those approaching retirement, that may include
reviewing retirement income strategies, considering tax-effective ways to draw income, planning for aged care, coordinating estate planning or making sure your overall strategy
remains aligned with your goals.
For SMSF trustees, it also means having experienced professionals available to help you understand how legislative changes or major life events could affect your broader retirement planning strategy.
Having support does not mean giving up control. For many SMSF trustees, working with a Gold Coast financial planner simply means having confidence that the decisions they are
making are the right ones.
If your financial plan has not been reviewed recently, now is a good time to act. Contact RFS Advice to speak with one of our experienced Gold Coast financial advisers
about building a retirement planning strategy to support you through every stage of retirement.
Frequently asked questions
It can. While the investment strategy may become more stable, trustees remain responsible for administration, compliance, reporting and ongoing investment decisions throughout retirement.
Trustees must maintain records, prepare annual accounts, arrange audits, lodge tax returns, review the fund's investment strategy and ensure the fund complies with superannuation legislation.
Yes. Many SMSF trustees work with a financial planner to review their retirement strategy, investment approach, estate planning and retirement income while continuing to manage their own fund.
If illness or declining capacity affects your ability to manage your fund, arrangements such as an enduring power of attorney may allow someone else to act on your behalf. Planning ahead is important to ensure the fund can continue to operate appropriately.
Retirement is not a one-off event. Your income needs, investment objectives, health and family circumstances can all change over time. Regular reviews help ensure your financial plan continues to support your long-term goals.
General advice warning:
The information and any advice provided in this article has been prepared without taking into account your objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things.
