Latest research shows a significant proportion of Australians with self-managed super funds are set to retire with enough savings to fund lavish retirement lifestyles.
SMSF actuarial certificate supplier Accurium claims many retirees with self-managed super funds are set to land on a retirement windfall, with enough in savings to fund "aspirational" lifestyles worth $100,000 a year.
Accurium general manager Doug McBirnie said the firm estimates around 40% of 65-year-old SMSF couples and 46% of singles have saved enough to be confident of achieving an aspirational lifestyle.
According to him, the numbers justify the decisions of thousands of Australian's to manage their own retirement savings.
|Sponsored by MetLife Insurance|
Do your clients understand how commissions work?
"This demonstrates that people who take control of their superannuation with an SMSF are well placed to enjoy a higher standard of living in retirement," McBirnie said.
McBirnie also said Accurium data shows typical 65-year-old SMSF couples should be confident of funding a lifestyle worth $82,400 a year, while singles in SMSFs are on track to achieve lifestyles worth $65,300, easily clearing ASFA's comfortable retirement standards.
"However, our previous research has shown that many SMSF trustees are hoping to achieve more affluent lifestyles in retirement, with around a quarter of couples planning on spending over $100,000 per annum in retirement," McBirnie said.
"Based on this aspiration, we estimate couples will need around $2 million in savings at the point of retirement. The good news is that 40% of 65-year-old SMSF couples and 46% of singles have saved enough to be confident of achieving an aspirational lifestyle."
The firm added its research estimates around 75% of Australia's 65-year-old SMSFs should be confident reaching the ASFA comfortable standard.