SMSF Retirement Insights – SMSF Association & Accurium Research

The SMSF Association and Accurium are the first to publish detailed figures on how the retirement wealth of Australia’s SMSFs have changed post the 2016 SMSF annual tax returns.

This new research features the increases in median SMSF balances and provides facts on retirees’ desired lifestyles in retirement including their confidence levels on their financial health.

The key takeouts from this research include:

  • 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.

At the time of publishing, the contents of this resource were accurate and correct.

Disclaimer: Technical Papers contain factual information only and are prepared without considering particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. The information contained in this document does not constitute advice given by the SMSF Association to you. If you rely on this information yourself or to provide advice to other persons, then you do so at your own risk. The SMSF Association is not licensed to provide financial product advice, legal advice or taxation advice. We recommend that you seek appropriate professional advice before relying upon the information in this technical paper. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this paper is not considered financial advice for the purposes of the Corporations Act 2001. © SMSF Association