RETP061 Retire at 65 but don't retire your money (529 words)

This article explains why retirees cannot park their funds entirely into conservative assets and enjoy a comfortable financial lifestyle. With the use of a case study, we explore the real-life impact of longevity risk and why it is important to retain some exposure into growth investments.

Australian retirees face a ‘double whammy’ when it comes to funding their retirement. On the one hand we, as a nation, are enjoying longer and healthier lives. On the other hand, recent low interest rates have slashed the returns on the traditional bedrocks of post-retirement investment portfolios such as term deposits, cash management accounts and annuities.