As market volatility continues and commentators start to talk about bear markets, self-managed superannuation fund members who are a long way off retirement can ignore the noise and focus on the long term. However, for SMSF members closing in on retirement, the reality of sequencing risk is starting to become more of a concern.

In its simplest form, sequencing risk refers to the sequence or order of returns – specifically negative returns – occurring at the same time you start to draw capital from your SMSF to fund your retirement.