Expert guide to investing for retirement

Your risk profile should also be considered here. “People tend to turn to more conservative investments closer to retirement because they want that money to last the rest of their lives and they don’t know how long they’ll live,” says he.

Diversification will help smooth out the natural ebbs and flows in financial markets. “One of the truisms of investing in the stock market is that no matter how low the market always returns to a higher level than it was before.

“You’re going to be retired for a very long time, so you don’t want to put all your eggs in one basket because you’ll inevitably miss a leg of the journey,” Clarke says.

A guiding hand

Discussing your situation with your financial planner as you approach retirement to find out how to maximize your savings is something everyone should consider.

Investment bonds can be a great option when a client is unable to add more money to their retirement pension due to contribution limits. Investment bonds are a tax-efficient way to build wealth with no limit on how much you can invest, and you can still access your investment if your circumstances change. The modern investment bond is very flexible with a wide range of investment choices, but the tax efficiency of investment bonds is the real standout feature.

Tax is often the biggest cost to investors, but they often overlook the strategies available to reduce it, Clarke says. “Tax awareness is key to maximizing the return on an investment. But many investors are swayed by performance numbers and overlook this fundamental element of strategy. »

Consider consulting a financial planner.Credit:iStock

Once retired, there are investment choices

Just as there are many investment considerations when saving for retirement, there are also many choices when it comes to investing for retirement. Retirement products such as pensions and account annuities are designed to provide income to people who have retired.

No product can meet all retiree needs and a complete retirement portfolio should have a mix of products.

Annuities have been around for a very long time in Australia and around the world. There are many versions of annuities, but one type of annuity that has seen recent innovation is the life annuity. Traditional life annuities pay income for life but offer little flexibility in investment or choice.

The latest life annuities are investment related and have been designed to optimize an investor’s retirement income and complement other retirement solutions such as account pensions. Generation Life’s LifeIncome product offers lifetime income that is linked to the returns of different investment options. When included in a comprehensive retirement portfolio, LifeIncome has the potential to provide investors with higher income during retirement.

“Retirement solutions are very flexible, which means adjustments can be made as your circumstances change after you retire,” says Clarke.

Having a financial advisor on hand who understands your situation and whom you can call with any questions along the way is priceless.

“Schedule a meeting with a financial planner who understands the rules of the game, because one thing is certain, there is always a solution that will maximize your retirement income in the way that works best for you,” says Clarke.

As the pioneer of Australia’s first truly flexible investment bond, Generation Life has been at the forefront of innovative investment, estate planning and retirement solutions since 2004. Generation Life is proud to shape the retirement income landscape with Lifetime incomeapplying our innovative approach to clients’ retirement income needs, allowing Australians to focus on retirement with the confidence of guaranteed income for life.

Generation Life Limited (Generation Life) AFSL 225408 ABN 68 092 843 902 is the issuer of LifeIncome. The information provided in this article is general in nature and does not take into account any individual’s investment objectives, financial situation or needs and is not intended to constitute personal financial advice. The Product Disclosure Statement (PDS) and Target Market Determination can be found at and should be considered in deciding whether to acquire, retain or dispose of the product. Professional financial advice is recommended. The offer made in the PDS is only available to people receiving the PDS in Australia. Generation Life excludes, to the maximum extent permitted by law, any liability (including negligence) which may arise from this information or any reliance placed thereon. Past performance is no guarantee of future performance.

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