How life events can affect your SMSF
A recent study of self-managed super funds (SMSFs) has found that life-changing events such as a divorce can have significant implications for trustees.
Women and SMSFs: A study of Self-Managed Super Funds, from the Commonwealth Bank and the SMSF Association found 42 per cent of SMSF trustees had experienced a life event since establishing their SMSF that could seriously impact their retirement savings.
Divorce, in particular, was found to be a tricky point for trustees. The report found that only 49 per cent of SMSF trustees believed they would have enough knowledge to take over sole responsibility for managing their SMSFs in the event of a divorce or separation.
The report also suggests that following a separation, divorce or death of a co-trustee, women were found to be more likely to change their strategies and align with their own investment goals, while men were more likely to maintain the strategies already in place.
Marcus Evans, Head of SMSF Customers, Commonwealth Bank, said the report was a clear indicator to the fact that the SMSF market is comprised of a diverse variety of investors, each with their own unique set of needs and financial expertise.
“Given that women account for nearly half of all SMSF members, more must be done to better support and empower female trustees,” Mr Evans told the Commonwealth Bank Money Management Blog.
“This is also true when it comes to funds with joint-trustees, with major life events such as a divorce leaving many female trustees without the confidence to manage what is many individuals biggest investment.”
To figure out whether a self-managed super fund is right for you click here. We’ve also published articles detailing the pros and cons of self-managed super funds and the common questions everyone must ask themselves before setting a self-managed super fund up.
You can also access the Commonwealth Bank’s Women and SMSFs report here.
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