3 hours ago
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March 22, 2026 — 5:01am
My husband (55) and I (54) are trying to decide whether it would be better to move to a self-managed super fund (SMSF) or use an administration platform (wrap). We’re currently in individual retail super funds.
We understand strategies to grow our super, and the general pros and cons of SMSFs versus retail/industry funds. However, we’re struggling to find clear information comparing them like-for-like, particularly since we wouldn’t be buying property inside an SMSF. What key factors should we consider when deciding between these two options?
I’d first start by clarifying what is wrong with staying where you are? Is the reason you are looking to move due to seeking cost savings, or is it that you want more control?
I find there is a perception among some people that when they get their super balance to a certain level it is a no-brainer to shift to SMSF, but in my experience it’s not that simple.
From a cost comparison perspective, SMSFs are typically viable once your combined super savings are around the $1 million mark. This does depend on how “self-managed” you intend on being.
If you are at the very DIY end of the spectrum, then the point at which an SMSF stacks up positively will be lower. If instead you intend to outsource most of the running of the fund, the crossover point will be higher.
If you go down the SMSF path, will that be sustainable as you age?
Keep in mind that if you go down the SMSF route you are taking on the legal obligations of a super fund trustee. Ensure you are up for this additional responsibility. The fund will require an annual tax return and audit done, so you need to keep accurate records of dividends, interest, contributions, trades, insurance premiums, etc.
Wrap solutions can be an excellent middle ground, and given you don’t intend to buy property with your super (which is the most common rationale for establishing an SMSF), these may provide you with a better outcome.
You don’t need to take on the trustee responsibilities, and the wrap provider will handle the ATO obligations. However, you gain input into the investment strategy, including, if you wish, direct share investments.
Finally, consider how your decision will play out 20 years from now. If you go down the SMSF path, will that be sustainable as you age? If one of you dies, will the survivor be able to continue running the fund?
I’m in my early 60s, working full-time on $120,000 plus super. I have a $350,000 mortgage on my home and a share in a family property worth about $750,000 with $70,000 debt, likely to be sold in two to four years and expected to trigger a significant capital gains tax (CGT) bill.
My super balance is $350,000. I’ve held off making extra contributions, so I can potentially use my unused concessional caps (carry-forward rule for balances under $500,000) to help offset the CGT when the property is sold.
Should I prioritise using those concessional contributions to reduce CGT, or focus on paying off my mortgage? My goal is to be mortgage-free after the sale and boost my super, while gradually transitioning to part-time work.
Your strategy with regard to using catch-up contributions to offset the CGT liability certainly seems sensible. It looks like you’ll have about $75,000 of potential deductible contribution capacity (check in MyGov), which would offset $150,000 of gains, given the 50 per cent CGT discount.
This leaves plenty of money to eliminate your mortgage. With the debt gone, focus on building your super to fund a comfortable retirement.
Paul Benson is a Certified Financial Planner at Guidance Financial Services. He hosts the Financial Autonomy podcast. Questions to: [email protected]
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their personal circumstances before making any financial decisions.
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