The Accurium SMSF Retirement Insights report, which analysed more than 65,000 SMSF trustees, estimated the average life expectancy of a 65-year old male SMSF trustee to be 90, and for a female 92, around three years longer than the Australian average.
The report also suggests that one in 10 male SMSF trustees is expected to live to 98 and one in 10 females to 99.
“For an SMSF couple planning their retirement from age 65 and wanting to allow for the lifespan of the longest surviving spouse, the figures are even higher,” said the report.
Accurium chief executive Tracy Williams said the research had important implications for SMSF retirees.
“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,” said Ms Williams.
The price of a long lifespan is a high cost for retirement and requires trade-offs between how much an SMSF couple spend each year in retirement and how much risk they are willing to accept around outliving their capital.
Accurium estimates 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.
For those wanting to spend $100,000 a year, a starting balance of $2.1 million would be required at age 65, Accurium said.