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A longer life for SMSF trustees
Self-managed superannuation fund (SMSF) trustees will live longer than the Australian average, according to research by SMSF service Accurium.
Based on an analysis of more than 65,000 SMSFs Accurium found the life expectancy for a 65 year old female SMSF trustee is 91.8 years - 2.7 years longer than the Australian average. Male trustees are likely to live to 90.2 years, 3.5 years more than the average.
Accurium chief executive, Tracy Williams, said that SMSF trustees are wealthier and more educated than most superannuation members and said these factors were assumed to lead to a longer life expectancy.
"SMSF trustees need to be aware that many will live beyond the Australian average and ensure they have a retirement plan that could sustain them for 35 years," she said.
In terms of couples Accurium estimated that a 65 year old couple wanting to spend $70,000 each year and willing to accept an 80 per cent probability of a successful outcome would need $1.3 million as an SMSF starting balance.
The research also found that the SMSF 65 year old couple should plan savings to last three to fours years longer than their longest life expectancy as the last survivor in a couple is expected to live considerably longer than the average life expectancies for the individuals on their own.
The research considered how health, wealth, and lifestyle factors contribute to people having a life expectancy that is higher than average.
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