Are self managed super funds the way of the future?

The fastest growing sector in superannuation is self managed superannuation funds, also referred to as SMSFs.

Below are some key advantages that can make them an attractive choice as part of your retirement strategy.

Cost savings

SMSF fees are usually fixed whereas retail super funds are charged as a percentage of the account balance so for accounts over $250,000. For example, it can be more cost effective to establish an SMSF than to use a retail superannuation platform.


With SMSFs, all the members of the fund are also trustees and are therefore responsible for all decisions.  They are also required to manage the fund in accordance with relevant superannuation laws.


Trustees can seek assistance of administrators, accountants and financial advisers in maintaining their legal responsibilities in the running their fund, or they can do it all themselves.

Investment choice

A much wider range of investments is available to trustees than may otherwise be typically offered by fund managers. This allows maximum flexibility in investment selection, especially for geared investments and non-traditional assets like artwork, bullion and certain types of land holdings.

Direct property

An SMSF can invest in direct property, whereas retail funds usually cannot. In addition, a business property owned outside superannuation can be transferred into an SMSF. For many self-employed people, having their SMSF own their business premises can make a lot of financial sense.


SMSFs can allow trustees to take a more tailored approach to managing taxation, especially when it comes to capital gains tax.


SMSFs can hold life, temporary disability and permanent disability insurance on their members. This can be a tax-effective way of managing both the cost of the insurance and any future insurance payouts.

Estate planning

The trust deed for an SMSF may allow for binding death benefit nominations. A will can be challenged in court, but under a properly executed binding death benefit nomination trustees must pay a death benefit as directed. This provides greater certainty in the distribution of assets.

Despite the detailed legal responsibilities attached to SMSFs, many people find the ability to manage their nest eggs highly rewarding.

Please contact one of our financial advisers if you would like more information how an SMSF might benefit you.