Preparing for Retirement During Uncertain Times

There’s no doubt that the past 4 months have been very volatile, and this uncertainty can cause some financial panic and distress to many – particularly those nearing retirement. 

Many Australians have experienced financial changes in their life and this can make it difficult to understand whether you will have enough for retirement.

If the last few years have taught us anything, it is to remain agile and calm in stressful times – and to have a plan and stick to it.

While some investments over the last few years have experienced volatility due to a number of reasons, it’s always important to take a holistic view when it comes to investing for your retirement.

Financial planning for retirement can help you feel confident that you’re taking the right steps towards financial freedom. 

Not only that, you can rest well knowing that your finances are in check when you’re retired.

How Do I Plan for Retirement During Uncertain Times?

1. Do Not Abandon Your Shares: An important thing that we advise is not to abandon your shares in times of volatility and market stress.

Many investors view shares as short-term investments. But when you’re planning for retirement, it’s important to ensure you stick to your retirement plan and take a long-term perspective. After all, your money and your investments have to last a lifetime.

Of course, you still need to recognise that share market investing comes with risks but it’s important to invest in assets that are evidence-based and align with your goals and your risk tolerance.

Learn more about how you can adopt a successful mindset when it comes to share marketing investing.

2. Don’t Be Afraid to Take on Risk: At times, investment markets will fluctuate. This is natural and to be expected by all investors.

Short-term volatility in markets has little (if any) bearing on long-term investment returns. It’s only when you take a long-term view of the performance of share markets that you get to see the bigger investment picture. This is especially relevant if your retirement is 10+ years away.

Many investors with a long investment timeframe are willing to take on more risk because they are aware that short-term fluctuations have a small effect on their long-term retirement investments and savings.

Risk can be an extremely effective way to see the returns you aim for. But always remember to invest in line with your personal risk tolerance and never take on too much risk that it affects your investment confidence.

3. Don’t Skip Asset Management: When it comes to investing for retirement, consider seeking advice about smart asset management.

Diversifying your assets and asset classes can help your money remain protected even in volatile times.

While it can be beneficial to take on risk, you will only see rewards if you are also adequately protected by a strategic, diversified investment portfolio.

Even if your investments are currently performing well, you shouldn’t ignore asset management. Asset management is about protecting your investments now and in the future so you can enjoy the benefits of financial freedom in retirement.

Speak to Cambio Group’s Financial Advisors if you Feel Concerned About Your Savings for Retirement

In volatile times, it’s best to seek expert advice. Our financial planners will help you create a strategic financial plan that gives you confidence about your future. 

We have an experienced financial advice team who help individuals best prepare for retirement – even in uncertain times. 

Ready to enjoy peace of mind for your golden years? Get in touch with our financial advice team today. Book a complimentary consultation here.

Disclaimer: The information (including taxation) in this website does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on the information provided without first obtaining professional advice specific to your circumstances.