The Association of Superannuation Funds of Australia (ASFA) says accelerating cost of living pressures are impacting on retirees with the highest annual increase in retiree budgets since 2010.
The volatility that we’ve seen over the last six months, while significant, is not an unusual occurrence for a normal and healthy functioning market. Despite the recent heightened volatility being an uncomfortable experience in the short- term, equity markets and some parts of the bond markets will continue to be an important contributor to overall long-term returns.
We appreciate that the current environment looks concerning given falls in markets and likely further interest rate rises during 2022, with the possible risk of recession, however it is important to continue to stay invested and manage your portfolio in line with your long-term objectives, aligned to your risk tolerance. We would encourage investors to discuss their portfolio with their adviser to ensure that it meets their personal needs, objectives and is in line with their risk tolerance.