Members of traditional accumulation super funds are forced to act individually when it comes to saving for their retirement. This is at odds with the needs of many when it comes to sharing their lives with others. The rules around SMSFs may solve this problem and provide some appealing benefits to members.

This article was developed and supplied by Heffron Managing Director, Meg Heffron. Meg has been working exclusively with SMSFs since 1998. Her firm specialises in all aspects of SMSFs – administration, actuarial, education, technical support and documents. They have an extensive range of content and CPD certified education (including specialised courses) for advisers and accountants looking to learn more about superannuation and SMSFs (www.heffron.com.au)

Summary:

• It is commonplace for life partners to share assets, investments, bank accounts and debt.
• It makes perfect sense to think of super in exactly the same way.
• Tax and super rules force us to be treated as individuals with separate personal income tax returns and everyone having their own unique super account.
• SMSFs let couples manage the investments made with their super money together.
• A running tally records how much of the fund “belongs” to each member but the SMSF investments are shared.
• In an SMSF, the minimum cash amount held in the fund is shared, meaning you can have less money overall held in cash and more invested for retirement.
• Couples can avoid the need to have multiple accounts and selling down investments when one member decides to start a pension. Instead, they may be able to rely on the contributions from their partner to fund their pension.