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Accurium points to merits of 'income bucketing' strategy

Accurium points to merits of 'income bucketing' strategy

Staff Reporter
18 February 2016

An income bucketing strategy can provide a significant boost to median balance when compared with a traditional balanced portfolio, according to new research from Accurium.

Research undertaken by the SMSF pension specialist indicated that over a 10-year period, an SMSF using an income bucketing strategy can provide a balance five per cent higher than a traditional balanced portfolio.

Accurium has claimed that for a typical SMSF at retirement with a balance of $1.1 million, an income bucketing strategy could provide an added $43,000 when compared with a traditionally balanced SMSF portfolio over 10 years.

Tracy Williams, Accurium CEO, noted that in a burgeoning and prospering investment market, income bucketing for SMSFs becomes an even more attractive option.

“When markets perform well, the typical SMSF using income bucketing could see a balance of $99,000, or six per cent higher than a traditional balanced portfolio,” Ms Williams added.

The research serves as part of Accurium’s latest retirement insights report, Pension Strategies for SMSF Retirees, which seeks to assess the three leading strategies for retirement: income bucketing, income layering and the safe withdrawal rate.

Accurium points to merits of 'income bucketing' strategy
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