Under the Superannuation Industry (Supervision) Regulations 1994 – Reg 4.09, all SMSF trustees must regularly review their investment strategy which includes whether all trustees have the need for insurance or not. We’ve previously discussed underinsurance in Australia and in much the same way, SMSF trustees need to consider the insurance needs of their members.
There has been a flurry of talks and claims that Australians basically need one million dollars in their super to retire comfortably. These claims caused panic among some of the retirees. Will they really need this amount for comfortable retirement?
Recently, there has been a flurry of activity around some articles appearing in the mainstream media that suggest that a retirement nest-egg of $1,000,000 is not sufficient to provide for a comfortable income in retirement. You might recall from previous blogs that figures modelled by the Association of Superannuation Funds of Australia (ASFA) suggest that a comfortable retirement lifestyle will cost a couple $58,364 and a single $42,604. So, is a million dollar enough to live a comfortable retirement?