Australia’s superannuation system is one of the strongest in the world, but many Australians may not be using it to its full potential. From missed tax savings to delayed retirement transitions, it’s worth considering whether your super is set up to support the future you’re working towards.
Many Aussies are missing out
Recent data from the 2024 Class Benchmark Report revealed that nearly half of Australians aged 65 and over with super in APRA-regulated funds have not moved any of their balance from accumulation phase into pension phase.
This could mean they are still paying tax on investment earnings, even when they may qualify for a tax-free income stream in retirement, depending on their age and circumstances. Halpin Wealth Partner and retirement specialist Heath Visser regularly assists clients in this situation.
“One of the most common things I hear from new clients is, ‘I didn’t know I needed to do anything.’ Unfortunately, not reviewing your super before retirement can mean missed tax advantages and lost income. It’s never too early to get the right advice.”
Professional advice can help to build solid foundations
Despite the long-term benefits that come with professional financial advice, not enough people seek it out. For some, getting advice can feel like a significant investment. However, the value of tailored guidance usually outweighs the cost when it leads to better retirement outcomes.
“I’ve met so many people in their 60s who say they wish they’d had a conversation about their super 10 or 15 years earlier,” says Heath.
“The opportunity to improve your super strategy isn’t just about how much you have. It’s about using the right structure, at the right time, with a clear plan for the future.”
Heath compares it to building a house.
“You wouldn’t try to build a home without an architect or licensed builder. Most people know you need solid foundations for something to last. Super is no different. Getting advice early can help prevent a lot of stress and avoid issues later on.”
The earlier you start asking questions, the more options you may have available. Whether you’re nearing retirement or just starting to think about the future, speaking with a qualified adviser can help you make confident, well-informed decisions.
Considering an SMSF?
For some people, setting up a self-managed super fund (SMSF) offers the freedom to take greater control of their retirement savings. It can provide access to a wider range of investment options and a more hands-on approach to super.
However, with that control comes responsibility.
The Australian Taxation Office (ATO) outlines that all SMSF trustees are personally responsible for the fund’s decisions, even if they engage a financial adviser, accountant or other professional to assist.
“An SMSF can be a great option for the right person, but it’s not a shortcut to success,” says Heath Visser.
“It takes time, experience and commitment. The best structure for retirement is one that matches your goals, your investment preferences and your capacity to manage it effectively.”
While your adviser can’t act as a trustee, they can help you navigate the requirements, offer tailored investment guidance, and support you in meeting your obligations.
Thinking about an SMSF? Ask yourself:
- Am I confident in managing financial and legal responsibilities?
- Do I understand the time and effort involved?
- Am I comfortable setting and maintaining an investment strategy?
- Do I have enough knowledge to make informed decisions?
- Will I seek professional support to help stay compliant?
- Is an SMSF the most cost-effective option for my retirement goals?
If you’re unsure whether it’s the right path for you, a licensed adviser can help you weigh the pros and cons based on your situation.
Find out if your super set-up is right for you
The good news is, it’s never too late to make positive changes. Whether you’re just starting to plan for retirement or already drawing from your super, it’s worth checking if your current setup still aligns with your goals.
“Retirement shouldn’t be a source of stress,” Heath says.
“Whether you’re fifteen years away or already retired, sitting down with a qualified adviser can help you feel confident in your decisions and avoid costly mistakes.”
Contact us today to book a no-cost, no-obligation conversation.
This information provided in this article is general advice only and has been prepared without taking into account your own objectives, financial situation or needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your own needs, objectives, and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice. Where a financial product has been mentioned, you should obtain and read a copy of the Product Disclosure Statement (PDS) prior to making any decisions about whether to acquire a product.