SMSF Retirement Insights Volume 2 Edition II: SMSF Trustees – healthier, wealthier and living longer | Accurium

SMSF Retirement Insights2
Executive summary

‘Healthy SMSF couples who want security in retirement should use a planning horizon of age 100’.

Australians have one of the highest life expectancies in the world. The increase in lifespans, highlighted most recently in the Government’s Intergenerational Report, is a recurrent focus in the media and a constant muse to practitioners operating in the financial services industry.

This SMSF Retirement Insights paper, ‘SMSF Trustees – healthier, wealthier and living longer’, presents new research that shows that SMSF trustees may live even longer than the average Australian. We have calculated the average life expectancy of a 65-year-old male SMSF trustee to be 90 and for a female 92, which is about three years longer than the average (3.0 years longer for men, 2.4 years longer for women).

Accurium’s analysis of over 65,000 SMSFs considers how health, wealth and lifestyle factors contribute to people having a life expectancy that’s higher than the average.
It also demonstrates that some individuals may live well beyond the average. Indeed one in ten male SMSF trustees is expected to live to 98 and one in ten females to age 99. For an SMSF couple planning their retirement from age 65, and wanting to allow for the lifespan of the longest surviving spouse, the figures are even higher.

But while a longer life expectancy is good news, it comes at a price. SMSF trustees need to be wiser about their retirement plans. A healthy 65-year-old SMSF couple wanting a high probability of not running out of money in retirement should plan for their money to last around 35 years, to age 100.