A growing need for retirement advice presents an opportunity for SMSF professionals.
“As SMSF practitioners there is a huge opportunity here for you to service clients’ needs in retirement,” Accurium CEO Tracy Williams told attendees at the 2016 Class. CUP. Connect conference.
“Over half of all SMSF members are of an age that they could be retired.”
According to ATO statistics 250,000 more SMSF members will be eligible to receive a pension over the next ten years.
“Over 70% of all SMSF members who walk through your door might be interested in services you can offer them about obtaining confidence and security in retirement.”
“In light of turbulent financial markets, and superannuation legislation uncertainty, clients will be looking for you to assist them in making the most of their retirement.”
Accurium and the SMSF Association recently released the report SMSF Retirement Insights: Are trustees prepared for retirement? This research found that over 48% of SMSF trustees would be detrimentally impacted by one or more of the superannuation changes announced in the 2016 Budget. Removing the ECPI tax concession for Transition to Retirement pensions is estimated to affect 25% of SMSFs.
Williams also told the conference that developments in technology have improved retirement forecasts. This includes ‘stochastic’ modelling, which calculates thousands of scenarios, based on realistic investment returns and inflation figures, to “stress test” household retirement objectives and can provide answers to complex retirement questions.
SolePurposeTest.com attended the conference at the invitation of Class Ltd.