Retiree Expectations and Concerns

Many people feel uncertain as they approach retirement, due to issues related to their financial, emotional and psychological situation. Surprisingly, research from CoreData has revealed that 50% of Australians retire earlier than they expected due to unexpected health issues, loss of employment or to care for other family members. The main fears expressed by pre-retirees […]

The Retirement Risk Zone

Most people wanting to maintain an enjoyable lifestyle during their retirement years will face many unknowns, any of which could easily derail their plans. Uncertainty surrounding lifespan, health, investment returns and their sequence and inflation make at least an annual review of your personal circumstances and goals mandatory. This allows adjustments to your spending rate […]

Post Retirement Investing

Extreme levels of uncertainty fir retirees, mean there has never been a greater need for high quality, affordable advice. In this article, Capital Group (Post-retirement investing: a framework for advice tailored to investor needs – Nov 26th 2020) propose an investment portfolio construction framework, that retirees can apply to their own situation. Investor needs differ […]

Responsible Investing for Retirees

According to the Responsible Investment Association Australia (RIAA), most Australians expect their savings (87 per cent) and their super (86 per cent) to be invested responsibly and ethically. Three-quarters would consider moving their banking, super or other investments to another provider if they found out their current provider was investing in companies engaged in activities […]

Is Early Retirement A Good Idea?

We are now seeing a higher proportion of people making the decision to retire well before the traditional retirement age of 65. In some cases, older employees who have lost their job during the COVID-19 pandemic period and found their re-employment prospects low, have decided to bring forward their retirement date. Apart from the financial […]

Fighting Inflation During Retirement

The inflation rate, as measured by the change in the Consumer Price Index (CPI), dropped to 0.3% for the 12 month period to June 2020.This result is largely due to the (corona virus induced) 1.9% fall in the CPI for the June quarter of 2020. However, for many retirees, major expenditure items such as healthcare […]

How Long Will You Be Retired? A common dilemma that adviser’s face when modelling financial outcomes during a client’s retirement is, “how long will the client live?”. According the recent life expectancy data, a 65-year-old person will on average, live to age 84.9 years for men and to age 87.6 years for a woman. However, there is a 50% chance […]

How to set your retirement portfolio

A common strategy for retirees, is to de-risk their investment portfolio by moving more money away from shares and property to defensive assets such as bonds and cash. The rationale is that they are less able to replace capital lost in a downturn and rely upon their savings to fund living expenses. In the case […]