As we age, the way we manage our superannuation needs to change. For elderly SMSF trustees, staying in control of your fund means more than just meeting compliance obligations, it’s about safeguarding your lifestyle, your estate, and your legacy.
At Nexia Perth, we work closely with trustees to ensure their super remains a source of stability and strength, not stress.
“Your SMSF should evolve with you,” says Robert Luo, Associate Director of Superannuation at Nexia Perth. “If your fund still looks the same at 75 as it did at 35, that’s a red flag.”
Review your investment strategy regularly
As you move through retirement, your financial goals shift. So should your investment approach.
A strategy that made sense 10 or 15 years ago may now expose you to unnecessary risk.
“Preservation of capital and income stability should be top priorities,” Robert explains. “Many trustees forget that their risk tolerance naturally decreases with age, especially when drawdowns begin.”
Maintain enough liquidity
If your fund’s assets are tied up in property or illiquid investments, you may find it difficult to meet minimum pension payments or unexpected expenses. Maintaining enough cash or liquid assets is critical for flexibility.
“Liquidity isn’t just about compliance,” says Robert. “It’s about financial dignity: being able to access your money when you need it, without stress.”
Make sure all trustees are informed
Often in couples or family funds, one trustee manages most of the responsibilities. But if something happens to that person, the other trustees may struggle to step in.
Ensure all trustees:
- Understand the fund’s structure and assets.
- Know where the key documents are stored.
- Can access the fund’s platforms and advisers.
“We’ve seen avoidable disruption simply because the backup trustee wasn’t across the basics,” Robert notes.“That’s a risk not worth taking.”
Finalise your estate planning
Your super doesn’t automatically form part of your will, which is why estate planning is essential for SMSF trustees.
Work with a professional to:
- Establish or update your Binding Death Benefit Nomination (BDBN).
- Consider a reversionary pension if appropriate.
- Ensure your trust deed and will are aligned.
“When super estate planning goes wrong, it often ends in conflict,” says Robert. “A clear, consistent plan can prevent family disputes and tax inefficiencies.”
Plan for loss of capacity
Ageing brings the possibility of physical or mental decline. Having the right legal protections in place is essential.
- Appoint an Enduring Power of Attorney (EPOA) who understands your wishes.
- Review your trust deed to ensure attorneys can step in legally.
“One of the most overlooked steps is future-proofing the trustee role itself,” Robert says. “Don’t assume your fund will run itself if something happens.”
Consider a corporate trustee
Switching from individual to corporate trustee can simplify administration and succession. It also reduces the paperwork burden during death or incapacity.
“Corporate trustees are a best-practice structure for longevity,” Robert explains. “They offer flexibility and continuity that individual structures often can’t.”
Establish an exit strategy
You may reach a point where managing your SMSF becomes too much. That’s when having an exit plan is critical.
Options include:
- Simplifying investments.
- Winding up the SMSF.
- Rolling over to an APRA-regulated super fund.
“An exit plan is exercising control while you still can,” says Robert.
Don’t let compliance slip
Compliance doesn’t get easier with age. In fact, as responsibilities grow, so do the risks of missing deadlines or falling behind.
A qualified SMSF adviser or administrator can help you:
- Keep up with regulatory changes.
- Meet reporting deadlines.
- Reduce administrative burden.
“Ongoing compliance is a risk management strategy in itself,” Robert notes. “If you want peace of mind, don’t try to go it alone.”
Ready to protect what matters?
If you’re an older SMSF trustee, now is the time to reassess, simplify and protect your super. At Nexia Perth, we specialise in helping trustees make confident, future-proofed decisions.
Contact Nexia Perth for tailored support from Robert Luo and our superannuation team.
