Retirement
SMSF trustees’ cognitive decline ‘needs to be looked at’
Given that nearly 40 per cent of SMSF trustees are between 55 and 70, the issue of cognitive decline is one that needs attention.
SMSF trustees’ cognitive decline ‘needs to be looked at’
Given that nearly 40 per cent of SMSF trustees are between 55 and 70, the issue of cognitive decline is one that needs attention.
That’s from SMSF Association head of policy Jordan George. Speaking at the SMSF Conference in Sydney last week, he said one of the SMSF Association’s focuses in 2018 would be cognitive decline and loss of capacity within the member population.
“Those age brackets [between 55 and 70] are either beginning retirement or moving into retirement in the next 10 years, so that's a significant percentage of our sector that would be retirement phase,” Mr George said.
“I think it’s really interesting thinking about those issues of a loss of capacity, to be a trustee with cognitive decline. I think that's something that's going to hit the sector.”
However, he added that the media and SMSF sector are “twigging to it”, while expressing support for the reforms proposed by the Australian Law Reform Commission (ALRC).
The proposed reforms, suggested in June last year, include requiring that SMSF trustees consider an exit plan and succession planning as part of their investment strategy.
Additionally, the ALRC proposed requiring the Australian Taxation Office to be notified in instances where an enduring power of attorney is used in running an SMSF, and that binding death benefit nomination forms be reviewed.
On Wednesday, SMSF Association chief executive John Maroney said, “The investment strategy recommendation will ensure that SMSF trustees and their advisers give more thought to planning for loss of capacity and ensuring that the right people assist SMSF members with their fund as they age.”
Continuing, Mr George said that as a large proportion of trustees move into retirement, the sector is also seeing growth in the number of younger trustees.
As of June 30 2017, SMSF trustees between 35 and 44 made up just above 12 per cent of SMSF members, while those between 45 and 49 made up just above 10 per cent.
“The average member age of SMSFs is dropping and that's because we're getting great growth from our younger demographics,” Mr George said.
“That 35-44 age group has really taken off, so we welcome the age dropping, that's a good thing.”
Continuing, he said that while the number of younger SMSF trustees was “great for growth”, the volume of people moving into retirement is “something that needs to be looked at”.
According to the World Health Organisation (WHO), the incidence of dementia is set to triple by 2050. They estimate that more than 150 million people will develop the condition, which impairs brain function and often accompanies old age.
The WHO warned that the estimated US$818 billion annual global cost of dementia could cripple development and overwhelm health and social services.
For the actual sufferers, Dr Tedros Adhanom Ghebreyesus said the impact is “enormous”.
He said, “This is an alarm call: we must pay greater attention to this growing challenge and ensure that all people living with dementia, wherever they live, get the care that they need."
RELATED ARTICLES
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
SMSF growth continues after pandemic peak
The statistics have begun to change coming out of the COVID-19 pandemic, according to new findings from Australian Investment Exchange Limited (AUSIEX). 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
SMSF growth continues after pandemic peak
The statistics have begun to change coming out of the COVID-19 pandemic, according to new findings from Australian Investment Exchange Limited (AUSIEX). Read more
