SMSF Retirement Insights Volume 6: SMSFs treading water | Accurium

SMSF Retirement Insights2

Executive summary

  • Despite small gains in balances an investment outlook of returns that will be lower for longer means many SMSFs are now further away from achieving their retirement goals than previously.
  • Median SMSF balances were up 1.2% for FY16, based on a median investment return of 1.0%, however, a weaker investment outlook means retirees need to save more to afford their desired lifestyles in retirement.
  • The amount needed for a 65-year-old couple to afford a comfortable retirement (as defined by ASFA)1 has increased by 17% from $702,000 to $824,000.
  • 66% of 65-year-old SMSF couples can be confident of affording a comfortable retirement, down 4% on our results from last year.
  • 28% of 65-year-old SMSF couples can afford to spend $100,000 a year, which slightly up on last year.
  • More than half of SMSF retirees cannot be reasonably confident (80% probability) of achieving their desired lifestyle in retirement while around one quarter can be very confident (95%).
  • One in four are actually unlikely (less than 50% chance) to achieve their goals.

1 ASFA Retirement Standard as at June 2017 – a comfortable lifestyle for a 65 year old couple requires spending of $60,063 p.a.