Safeguarding Super in Uncertain Times: 7 Practical Steps for SMSF Investors

Markets don’t like uncertainty – and neither should your retirement strategy.

With global volatility resurfacing on the back of shifting geopolitical tensions, a potential second Trump presidency, and persistent inflationary pressures, it’s never been more important to actively protect and optimise your superannuation.

While the average Aussie might think their super is “set and forget”, Self-Managed Super Fund (SMSF) trustees know better. Preserving wealth – and compounding it – requires active decision-making, risk management, and portfolio discipline.

Below, we distil seven evidence-backed strategies for protecting your retirement savings in today’s unpredictable landscape.

1. Reassess Risk Tolerance (And Actually Mean It)

When markets are calm, it's easy to say you're comfortable with volatility. But how would your SMSF react to a 20% equity downturn?

“Don’t confuse your attitude to risk with your capacity for risk...time horizon, withdrawal needs, and portfolio structure all matter.” Financial Advisor Julie Steed

If you're approaching retirement or drawing a pension, downside protection matters more than capturing every upswing. This could mean reducing exposure to high-beta growth stocks or reallocating part of your portfolio to more defensive asset classes like fixed income, gold, or uncorrelated alternatives.

Regularly review your investment strategy statement and update it to reflect real-world tolerance – not theoretical bravado.

2. Keep Liquidity Front-of-Mind

A key challenge for SMSFs invested heavily in property or private assets is liquidity. If markets fall or rents drop, can your fund still pay its obligations – including pensions?

You don’t want to be forced to sell at the wrong time. The ATO has flagged liquidity shortfalls as a top compliance concern.

Tip: Maintain a buffer of 6–12 months of expenses in cash or cash equivalents within your SMSF.

3. Don’t Let Fees and Underperformance Compound

When volatility hits, costs matter more than ever. Yet many Australians still pay layered fees across multiple funds, platforms or underperforming retail products.

According to the Productivity Commission, just a 0.5% fee difference can erode your super balance by tens of thousands over time.

One advantage of SMSFs is cost control. But that only applies if you’re actively managing costs – including auditing, admin, investment products, and advisory. Consider switching to lower-cost index options or negotiating advisory rates, particularly if you’re using a wrap platform inside your SMSF.

4. Rebalance When the Market Gives You the Chance

In volatile markets, your asset mix drifts. Australian shares might slump, while gold or international equities surge. Regular rebalancing helps maintain your target risk profile and avoid overexposure to any one asset class.

Professional funds typically rebalance quarterly. SMSFs often forget – or avoid it due to perceived effort.

Action: Schedule an investment review at least twice a year. It’s also a good prompt to recheck asset valuations and update your fund’s documentation.

5. Use Contributions Strategically

If you’re still accumulating, take advantage of the concessional and non-concessional contribution caps while you can. A change in government – whether in Australia or overseas – can shift super tax settings quickly.

"There is always the risk of retrospective rule changes. It’s about using the rules while they exist,” SuperRatings executive director Kirby Rappell.

SMSF trustees in particular can benefit from bring-forward rules, downsizer contributions and strategic timing of salary sacrifice arrangements.

6. Diversify Globally – Intelligently

While many SMSF portfolios are heavy in Australian property and banks, this exposes you to concentration risk.

International equities, infrastructure, and thematic ETFs (e.g. healthcare, technology) can broaden your exposure. But beware of currency risk and regional overweights.

In periods of political uncertainty – consider sectors with structural tailwinds (e.g. energy security, defence, AI automation).

7. Have a Plan Beyond Investments

Finally, your super isn’t just about investments. It’s about the income it can provide, and the legacy it can support.

Ensure your SMSF has:

• A valid binding death benefit nomination

• A clear estate plan aligned with the trust deed

• A strategy for transition-to-retirement or account-based pensions

• Contingency plans if a trustee becomes incapacitated

Uncertainty doesn’t just come from the markets. It can come from within your family, your health, or regulatory change.

Final Thoughts

Whether the storm is political (Trump 2.0), economic (rate hikes, inflation), or financial (market correction), your SMSF doesn’t need to be at the mercy of external forces.

By following these seven principles, you can stay proactive, protected, and on track to the kind of retirement most Australians only dream of.

Want expert support managing your SMSF strategy in uncertain markets?At WT Capital, we help clients build property-backed super portfolios designed to weather volatility and unlock growth. Contact us today to learn more.