More than half of small business owners believe they will need more than $75,000 a year in retirement meaning they will need more than $1 million in super savings, according to a new study released by mid-tier accounting firm, RSM Australia.
According to RSM Australia’s latest thinkBIG report, while 36 per cent of respondents were highly satisfied with their superannuation provisions, 28 per cent were dissatisfied and more than half (57 per cent) believed they would need more than $75,000 per annum in retirement and just 12 per cent believed they need less than $50,000 per annum.
Commenting on the research, RSM Australia national head of business advisory, Peter Saccasan pointed out that a couple needed around $60,000 a year for comfortable retirement which meant they needed more than $1.1 million in their account at the time they retired.
Reports suggest a couple needed around $60,000 for a comfortable retirement, which meant they needed more than $1.1 million in their superannuation account when they retired.
“For those looking to retire on an annual income of $75,000 or more, they must build that goal into the business plan sooner rather than later,” he said. “Let’s face it, the owner’s SME will be the source of investment funds for superannuation.”
“Under the new regime, it may be more difficult to accumulate enough in superannuation to support an annual income of $75,000. This will require people to accumulate assets outside of superannuation or it may push for riskier investments in the quest for higher returns.”
Saccasan said this meant it was more important than ever that people started contributing to their superannuation funds as early as possible and, SME owners nearing retirement age get professional advice as soon as possible to ensure were aware of their opportunities to maximise superannuation.
“As the superannuation landscape continues to change it remains crucial for SME owners to keep a close eye on their strategies and investments,” he said. “It’s important to seek professional advice from licensed financial advisers before making any decisions, as these can affect their ability to retire as planned.”
