The Australian Government Actuary released new life tables in December 2019 based on the results of the 2016 Census. These actuarial statistics show Australian’s are living longer, and living to age 100 should now be seen as a real possibility.
A key concern for SMSF retirees is ensuring assets last for life. When planning for retirement allowing for longevity risk is more complicated than simply planning for assets to last to life expectancy due to the considerable uncertainty around how long any particular individual will live. How long you will live is the single greatest unknown in retirement planning.
This session will explain longevity risk and examine the key factors that affect life expectancy including Accurium’s research into life expectancies of SMSF trustees. We will consider techniques for how longevity risk can be allowed for in retirement planning to ensure SMSF retirees can be confident assets will last for life.
• Describe longevity risk
• Analyse an individual or couple’s life expectancy
• Develop retirement advice that adequately allows for longevity risk