When planning for retirement, it’s important to understand your SMSF household needs, and outline your goals with your adviser.
The latest report on the financial health of SMSF trustees heading into retirement has found that the amount needed for a 65-year-old couple to afford a comfortable retirement has risen by 17 percent from $702,000 in the previous year to $824,000.
Unfortunately, this report has also found that one in four are unlikely to achieve their SMSF goals.
Realistic wealth goals for SMSF trustees
Of course, achieving your ideal lifestyle is easier if you start with more wealth. The direct link is the greater level of initial wealth, the higher chance an SMSF household will be able to live their desired lifestyle in retirement.
The last seven years has seen a rising trend of median SMSF balances, but recent weak investment markets have resulted in low returns, and only a small increase. This brings the median balance for two member SMSFs to $1,137,000 with the median imputed investment return of 1.0 percent,