The SMSF sector needs to address the issue of longevity risk in a more meaningful manner as the projected age of Australians continues to increase, a senior executive with an industry body has said.

Deciding to “cross that bridge when I come to it” may leave SMSF investors with less-desirable options and outcomes, and their families and advisers with more stress and risk.

Rising costs of living are significantly impacting on Australian retirees, with couples needing to fork out over $60,000 a year for a comfortable retirement, according to new figures from the Association of Superannuation Funds of Australia (ASFA).

A landmark stage in the life of an SMSF is when at least one its members moves from the accumulation phase to retirement phase.

SMSF investors on average are older, wealthier and exhibit far more control over their decisions than others in the superannuation industry, which also makes them more susceptible to the impact of early losses on their retirement funds.

The dramatic reduction in the superannuation non-concessional contributions caps to be introduced on 1 July has given some merit to the strategy where an individual puts borrowed money into their retirement savings vehicle, a senior accounting executive has said.

The new superannuation rules have given greater impetus to have a retirement plan in place much sooner than previously suggested, a specialist SMSF adviser has warned.