Studies show that the most efficient way to reduce dependence on the age pension and provide higher standards of living in retirement is without doubt the DIY Superannuation funds. From 2002 to 2010, the number of people relying on the DIY superannuation funds has increased for 42 percent. This is because with SMSF Australians have more freedom to invest in venture capital and infrastructure, have greater access to capital for Australian banks and companies, etc.
Many other similar trends have changed the way retirement process functions. According to the Australian Bureau of Statistics, Australians live longer, and normally their retirement age is expected to rise. That is a little bit scary for older and retired people. The question is “What is the ideal retirement age”? Should people rely only on their pensions, or should they take things into their hands? Here’s what impacts Australia these days.
DIY Superannuation Fund – Would you like to save money for your retirement but under your terms? Then it’s time to set your own self-managed superannuation fund. This retirement fund is becoming the must-have among Australians. DIY superannuation funds are perfect for people who want greater control over their money. Those who are good in finance and management should definitely consider setting up an SMSF, since they will be liable for all investment decisions and will be able to mange the funds themselves. DIY superannuation funds are not designed to make you rich overnight, but to double the money you invested to ensure fruitful retirement. It definitely pays off in the long run.
Retirement Villages – Researches show that even 70% of the older population will move into retirement villages. Believe it or not, there are over 2,200 residential villages across the entire country. That means each community has these types of retirement homes that have the capacity to accommodate over 170,000 seniors over the age of 55.
Average Retirement Age Is Rising – The average retirement age for men in Australia was 58 and for women it is 50. But, that has changed since Australians live longer. The Australian Bureau of Statistics has changed the retirement age and for men it is 63.3 and for women 59.6. According to a recent survey most Australians intend to retire at 65, while about 17% will retire when they reach 70 or older. If we take this into an account, the average retirement age for men will is then 63.8 and 63 for women.
source: http://www.smsfwarehouse.com.au/smsf-setup/how-to-setup-a-smsf/diy-smsf