When you embark on anything new, you are bound to make mistakes. But when those mistakes are in relation to money, they can have big implications. So how do you avoid those rookie mistakes when you start your retirement? The first step is to know the common mistakes others have made so you can learn from and avoid them.
The severe falls in global share markets in late 2018, after almost a decade of strong market returns, led many investors to ask whether it was too risky to stay invested in the share market during their retirement. If they did stay invested, should they move to a strategy with less exposure to higher risk investments, like shares? As it turned out, markets rebounded in January, recovering most of their December losses. It’s normal to feel anxious about your investments when markets are volatile. However, changing your investment strategy in response to market volatility can have serious consequences for your wealth in retirement. We put superannuation – specifically, account based pensions − under the microscope and look at some of the lessons we can learn from the past.
Imagine a baby is born in Europe at the very moment you finish this article. That child can expect to live for two minutes longer than one born as you finish this sentence. Increasing lifespans threaten to topple the current pensions model. But, then again, maybe it’s time for a change.
Money usually comes to mind straight away when we think of retirement. But it takes more than money to have a happy life, no matter what age. And when it comes to finding a good balance in life post-work, there are big differences between men and women.
Supporting your dependants doesn’t have to come at the expense of building your retirement nest egg.
Take control of your retirement Are you affected by the increase in the Age Pension’s qualifying age? Take steps now to avoid getting caught short on retirement income. The minimum age to qualify for the Age Pension has started going up. For those born on or after 1 July 1952,…