Highlights

  • Ask most SMSF members why they run their own fund, and control is usually near the top of the list.
  • The strategy should reflect the purpose and circumstances of the fund and its members, and be reviewed regularly.
  • Recording this reasoning also helps demonstrate to the auditor that the strategy has been genuinely considered.
  • Research reported this week suggests many Australians, including many aged 55 and over, have not calculated a retirement savings target.

For SMSF trustees, the findings are a timely prompt.

What the research found

reported on 11 November 2026 on "The Lifetime of Investing" research from Selfwealth by Syfe, based on a YouGov survey of 1,060 Australians aged 18 and over conducted in September and early October 2026.

  • 61% of respondents had not calculated how much they would need in retirement;
  • 47% of those aged 55 and over had not calculated a target, compared with 29% of those aged 18 to 24;
  • 21% had chosen a figure that simply "feels right";
  • only around 10% to 15% had used a calculator or sought advice; and
  • 52% of those who had used a calculator or adviser were confident of reaching their target, compared with 15% to 20% of those who had not calculated a number.

Samantha Horton, acting head of Australia at Selfwealth and chief operating officer of Syfe, said many people assume super will cover their retirement, but that it may not be enough on its own, particularly for those wanting to stop work earlier, facing higher living costs or living longer.

The survey covered Australians generally, not SMSF members specifically, so trustees should be cautious about applying the figures directly to their own sector.

Why a target matters for an SMSF

The ATO's guidance on creating an SMSF Investment strategy says trustees must consider factors including the risks and likely returns of investments, diversification, liquidity, the fund's ability to pay benefits and other costs, and whether to hold insurance for members.

Without a retirement target, it is hard to judge whether the strategy's return objective is realistic, how much risk is needed or whether the fund will have the Liquidity to pay pensions.

Building a target in practical steps

A retirement target does not need to be precise to be useful. Members could start by:

  • estimating annual spending in retirement, separating essentials from discretionary items such as travel;
  • considering when they would like to stop or reduce work and how long retirement might last;
  • factoring in other income sources, such as any Age Pension entitlement, investments outside super or part-time work;
  • allowing for one-off costs, such as home maintenance, car replacement or support for family; and
  • using a reputable retirement calculator or seeking advice to test the numbers.

Hypothetical example: a couple aged 58 in the same SMSF estimate they will need about $80,000 a year in today's dollars once they retire at 65.