As your super balance grows, you may start wondering whether a self-managed super fund (SMSF) is the right choice for you.
An SMSF gives you greater control over how your retirement savings are invested, but it also comes with significant responsibilities. Before making the switch, it’s important to understand what’s involved.
SMSFs: What you need to know
You’re responsible for running the fund.
As a trustee, you’ll be responsible for managing investments, keeping records, lodging tax returns, and ensuring your fund complies with superannuation laws.
There can be additional costs.
Setting up and operating an SMSF involves expenses such as accounting, auditing, administration, and regulatory fees. Depending on your balance, these costs may be higher than those of a professionally managed super fund.
It takes time and expertise.
Managing your own super means researching investment opportunities, making decisions, and regularly reviewing your portfolio to ensure it continues to meet your retirement goals.
The rules are strict.
SMSFs are regulated by the Australian Taxation Office (ATO). Failing to meet your legal obligations can result in penalties or the loss of valuable tax concessions.
Is an SMSF right for you?
An SMSF can be a good option for some people, but it’s not the best choice for everyone. Before making any decisions, it’s worth understanding both the benefits and the responsibilities.
The Australian Taxation Office provides helpful information about whether an SMSF may be suitable for your circumstances, and our SMSF fact sheet explains what’s involved if you’re considering rolling your super into an SMSF.
Access our SMSF fact sheet here.
We’re here to help
If you’d like to better understand your super or discuss your options, Australian Food Super is here to help. Contact our team at service@ausfoodsuper.com.au or call our Member Hotline on 1800 808 614.