Ageing SMSF trustees are a potential “recipe for disaster” because of the risk they will suffer dementia or another form of mental impairment while still controlling the bulk of the sector’s $822 billion worth of assets.

A recent spate of legal actions revealing wealthy elderly suffering dementia, or other forms of mental impairment, exposed large amounts being lost through either neglect, abuse or incompetence, and highlights the growing problems facing rich retirees.