Benefits of Setting up A Self-Managed Super Fund

Why should you set up a self-managed super fund instead of going with a retail or industry pension fund? Well, there are three main advantages to a self-managed super fund: cost, freedom, and control.


The costs for running your personal superannuation fund tend to be typically fixed and are not dependent on the entire amount of assets you have. Other superannuation funds typically charge a percentage of assets as their fees; therefore, your higher account balance the more you pay.

Thus, when your retirement funds/assets exceed a certain amount, a self-managed super fund would offer additional cost benefits. And if you have other members in your super fund, you can bundle your funds and share the fixed costs. By the way, a higher balance in your fund will also allow you to better diversify your investments and get a better effect on borrowing for investments.

For example, if you have $ 300,000 in a self-managed super fund and the cost per year is $ 3,000, the fixed cost is 1% of your fund balance. However, if you have another member in the fund that also has $ 300,000 (a total of $ 600,000 in the fund) in his retirement pension, the fixed cost is 0.5% of the total fund balance.


A self-managed super fund gives you the freedom and flexibility when it comes to a range of vital decisions such as how benefits can be paid to members when they retire or how death benefits are paid in case death of a member.

You will also have the option of charging your fund in assets instead of cash.


Just like its name, a self-managed super fund is self-managed, so it allows you to control decisions made in the Superfund. You have the power to choose and develop an investment strategy tailored to your needs and to have a direct sense in all investment decisions.

You will have access to a wider choice of investment options such as real estate, quoted shares, corporate bonds and also managed investments. You will also be able to buy or sell own investments while other retirement funds do not provide this service.

There is also the option for you to borrow in your self-managed super fund to give you leverage for some investments. As mentioned earlier, a larger fund balance will allow you to better diversify your investments and provide you access to certain investments that require a high balance, such as commercial properties.

A self-managed super fund will also allow you to efficiently plan and structure certain tax events that are not available in a public offering fund.

There is a range of benefits that a self-managed super fund can offer. However, it is not suitable for everyone – and if you do not know the investment strategies and tax laws of retirement, it is highly recommended to seek professional advice from a financial planner before setting up your own self-managed super fund.

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