Advisers Face Surge in Retirement Transfer Queries
Advisers are seeing a surge of inquiries about retirement asset transfers as the so-called Silver Tsunami pushes millions of Australians toward the retirement stage in the next decade.
Beyond the shift in life stage, the inevitable deaths of this cohort are projected to move roughly $4.5 trillion in wealth to younger relatives, creating a parallel planning challenge.
Self-managed superannuation funds
Clients with self-managed structures must consider who will run the fund after death or loss of capacity, making trustee replacement a core part of succession planning.
Capacity planning can be as critical as death planning because loss of mobility or mental ability may jeopardise the fund’s tax status.
Mailene Wheeler, a superannuation adviser at Vincents, explains that trustees must stay active to retain concessions. “If you lose capacity, then you could be out of the definition of being an SMSF and all your tax concessions,” she said.
Wheeler adds, “We’re talking about it with clients. Do you have an enduring power of attorney in place? And what the implications are for an SMSF?”
Beneficiary nominations are limited by law to a spouse, a financial dependent, an interdependent partner, or a child, including adult children.
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To leave assets to a friend, a member would need to direct the benefit to their estate, allowing the will to determine the final distribution.
Lindzi Caputo, a wealth partner at HLB Mann Judd Sydney, notes that self-managed funds suit balances often exceeding 1 million dollars, where tailored strategies can add value.
She warns that greater control brings greater responsibility: trustees must meet legislative compliance, keep records, prepare statements, arrange audits, and maintain ongoing regulatory obligations.
APRA-regulated super funds and wrap accounts
Some retirees seek alternatives to standard APRA-regulated superannuation, looking for flexibility without the complexity of a self-managed setup.
When a member of an APRA-regulated fund passes away, the balance is paid to eligible dependants or the estate, following the fund’s rules and any valid binding death nomination.
Advisers often recommend an individual superannuation wrap account, which mirrors a regulated fund but lets members choose investments directly.
A wrap account typically provides broader options such as shares, ETFs and managed funds, while the provider handles administration and compliance.
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Caputo points out that franking credits flow straight into the wrap account, helping to offset tax in the accumulation phase or, for retirees in pension phase, potentially being refunded.
Property and business interests
Beyond super, many clients hold direct property or business assets that require separate succession strategies.
For example, an owner of a construction firm may also own the commercial premises; the property could go to one heir while the business equity passes to another, each needing distinct legal treatment.
Stephanie Patrick, senior adviser at Koda Capital, says the valuation of a business and its equity often outweigh the property component in overall worth.
She notes that directly held property follows the ownership structure: joint tenancy automatically passes to the surviving owner, while tenants-in-common are distributed according to the owner’s will.
Patrick observes that many older clients are consolidating large property portfolios, as direct ownership can be time-intensive, illiquid and “quite lumpy” as an asset class.
