SMSF members have only started to reconsider superannuation as a retirement funding tool, with many still viewing it as an untouchable nest egg.

Retirees should be given incentives to use their superannuation savings rather than planning to pass on their money as a bequest.

The SMSF Association has called on the government to use a sensible approach to the implementation of the proposed retirement income covenant.

The retirement income covenant will apply to all super funds, including SMSFs, and will carry similar obligations to those required for investment strategies.