SMSF Phases: From Accumulation to Gathering the Fruit of Your Labor


While there is no need to know all the rules of SMSF in order to run a successful super, but you must have at least a basic knowledge of the three phases and how they function. First off, let’s mention a few of the benefits of SMSF as it offers great investment options and provides you with more investment options than any other kind of super. It also provides a lot of flexibility because up to four members can run a big mix of pension accounts and accumulation. This means that the trustees can adjust their mix of investments how they want to and how it suits them. This option is great as the conditions of the market can shift and change any minute without any kind of warning. As you go through the different stages your pension and the tax treatment of your fund. Your overall strategy of investing will also shift when your super moves on from one phase to the next. The three stages of a self-managed super fund are accumulation, the transition to retirement, and the superannuation pension phase.


This is the longest phase of your super and that’s the case for most people. However, it does depend on your age and at when you decide to start your SMSF. The phase starts when you start working and lasts until you’re in your 50s. The name of this phase says it all, this is the phase where you’re contributing to your super, not spending anything on it, and you;re trying to save, or accumulate, as much money as possible by earning it.

Transition to retirement

This is the shortest phase of any super, as short as it is, many people make the most mistakes in this phase. The mistakes have a huge impact and every decision is critically important. In this phase, you can simply spend, make a balanced decision between spending and saving, or you can still save all of your money.

Superannuation pension phase

This is also the phase where you get to spend all that you’ve accumulated, saved, and earned over all those years you spent working hard. You can also call it “spending phase” because everything should be spent and you really shouldn’t be accumulating. You should be focusing on preserving your capital, generating, even more, income, and spend all of your funds which are probably sustainable. Whatever the case, this is the phase that you should enjoy and live your life without any worries.


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