Retirement
Recession could see SMSF popularity skyrocket
If a recession were to come to fruition, an SMSF boom would be highly likely as Generation X clients flock towards self-managed funds and away from lower-returning industry funds, according to a leading SMSF strategist.
Recession could see SMSF popularity skyrocket
If a recession were to come to fruition, an SMSF boom would be highly likely as Generation X clients flock towards self-managed funds and away from lower-returning industry funds, according to a leading SMSF strategist.

Speaking at Class Connect’s 2019 conference, I Love SMSF’s director Grant Abbott said while momentum is currently with industry super funds from a public perception perspective due to their successful marketing campaign around returns, significant economic and sharemarket declines could see this trend reverse.
“From my perspective, I think there’s a lot of opportunity if we go into recession, then the industry funds go down and they can’t talk about their fantastic returns,” Mr Abbott said.
“Every time they go down, I can tell you we actually get an uptick in terms of new members and they are particularly coming through from Gen X, those people who are now 35 to 55, are now starting to look to retirement and they’ve built up a bit of superannuation.”
At the same time, this generation was likely to inherit significant wealth from the passing of their SMSF trustee parents, making robust estate planning within the generations the next key skill set for SMSF professionals, Mr Abbott said.

“We’ve got $300 billion that’s going to be passed out through death benefits over the next 15 years, so we all need to become estate planning geniuses,” he said.
“We also need to start thinking a lot more broadly, and not everything is about SMSFs — we should be using bucket companies, family trusts and not seeing any money going from SMSFs into an estate, because as soon as it goes in there, the lawyers challenge it.”
Mr Abbott said that while popular, binding death benefit nominations were also a less solid estate planning option for trustees due to the rising incidence of legal challenges.
He nominated testamentary trusts built inside the SMSF as a good option as well as reversionary pensions and binding death benefit directions.
“Family allowance agreements to me are also a very special tool, where instead of ad-hoc support, we have regular monthly income coming down to the family,” Mr Abbott said.
“Rather than doing it individually, if we do it to the whole family with evidence by agreement, there’s a good chance depending on the circumstances that at the death of that person providing financial support, all of that family will be financial dependents and escape death duties.”
About the author

About the author


Self managed super fund
Industry leaders launch SMSF Innovation Council to drive digital transformation
A consortium of finance industry leaders has launched an SMSF Innovation Council to help Australia's $1.02 trillion self-managed superannuation fund industry navigate digital transformation. Read more

Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more

Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more

Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more

Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more

Self managed super fund
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts. Read more

Self managed super fund
Debunking a superannuation tax myth: SMSF Association clarifies the impact on Aussie farms
In the ongoing debate about a proposed new tax targeting superannuation funds exceeding $3 million, the SMSF Association has stepped in to challenge claims from the Association of Superannuation Funds ...Read more

Self managed super fund
Is an SMSF right for you?
When it comes to planning for retirement, one of the most significant decisions Australians have to make is how to manage their superannuation. Read more

Self managed super fund
Industry leaders launch SMSF Innovation Council to drive digital transformation
A consortium of finance industry leaders has launched an SMSF Innovation Council to help Australia's $1.02 trillion self-managed superannuation fund industry navigate digital transformation. Read more

Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more

Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more

Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more

Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more

Self managed super fund
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts. Read more

Self managed super fund
Debunking a superannuation tax myth: SMSF Association clarifies the impact on Aussie farms
In the ongoing debate about a proposed new tax targeting superannuation funds exceeding $3 million, the SMSF Association has stepped in to challenge claims from the Association of Superannuation Funds ...Read more

Self managed super fund
Is an SMSF right for you?
When it comes to planning for retirement, one of the most significant decisions Australians have to make is how to manage their superannuation. Read more