SMSF pensions: Planning your pension properly

Tim Miller from SuperGuardian discusses the most important considerations when planning a pension, potential traps to look out for, and what often can be overlooked.

Transcript

What is a pension planning toolkit, and how can it assist SMSF trustees?

The concept behind the pension planning toolkit is to really appreciate that when we look at setting up a pension in a self-managed superannuation fund, that we need to understand that there’s all these additional tools available to us to think about to ensure that we actually get the right pension in place. Because in a self managed fund, we’ve only really got one type of pension. But there are multiple options that we can do with regards to whether it’s reversionary or non-reversionary.

So whether it automatically goes to someone on death or otherwise, whether we set up one pension or two or three, because that can have estate planning ramifications. The idea of the pension planning toolkit is to work your way through a number of sort of strategic questions to ensure you’re getting the best pension available for your own set of circumstances.

In what scenarios might SMSF trustees consider having multiple pensions?