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.


Disclaimer

This information is provided by Accurium Pty Limited ABN 13 009 492 219 (Accurium). It is factual information only and is not intended to be financial product advice, legal advice or tax advice, and should not be relied upon as such. The information is general in nature and may omit detail that could be significant to your particular circumstances. The information is provided in good faith and derived from sources believed to be accurate and current at the date of publication. While all care has been taken to ensure the information is correct at the time of publishing, superannuation and tax legislation can change from time to time and Accurium is not liable for any loss arising from reliance on this information, including reliance on information that is no longer current. We recommend that you seek appropriate professional advice before making any financial decisions.