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 […]

Commonwealth Seniors Health Card – are you eligible?

People who are age pension age, meet the residency rules and receive no income support from Government Services may get the card, which provides: -Cheaper medicine under the Pharmaceutical Benefits Scheme -Bulk billed doctor visits – this is up to your doctor -A bigger refund for medical costs when you reach the Medicare Safety Net […]

How to Manage Your Spending in Retirement

In this edition, we look at “How retirees should manage their spending”. The typical recommended rate at which savings should be spent may not always be appropriate. The key is to cover (within reason) all foreseeable expenses and remain flexible by adjusting your spending as the market or your personal circumstances change. So if you […]