Some two million retirees could spend $22.5 billion in retirement by the year 2040 if the Quality of Advice Review proposals go through according to research commissioned the Financial Services Council.

The study, which was done via NMG Consulting, also found annual bequests from retired Australians paid out of super would halve from the current projected path, down from a current forecast of $53.7 billion to $26.8 billion by 2060.

Advice review lead Michelle Levy proposed a ‘good advice’ regime in August which she believed would entrust professionals in the industry to use their judgement to work in a principles-based regime. She will deliver these proposals, largely unchanged, to Treasury next month.

The FSC said the reforms would increase the provision of information, products and advice for those unable to afford comprehensive advice, although it notes that this would be done through offering consumers more choice by using super fund tools, and retirement calculators and estimators.

The research suggested 100,000 additional retirees receiving advice each year would more efficiently draw down their super equating to $10,000 in increased retirement incomes per individual every year.