Balance your investments
Investing when you’re retired is different to investing in super when you’re still working. You might not have given much thought to balancing your investments before, but in retirement it could be more important than ever.
Security, growth or both?
Being retired doesn’t mean you can’t take risks. You could need your retirement savings to last for decades, so choosing the most secure investment options, such as Cash, might not give you the growth you need over time.
Our Retirement Income Pension allows you to choose more than one plan or more than one asset class, so you can balance both security and growth at a level that is right for you.
Your investment mix changes over time
When you chose your investment plan or plans, you also chose which plan(s) your regular income payments are to be made from. If your income is coming more from one plan over another, in time, the mix you selected will have changed.
The performance of your investments depends on the performance of the markets.
For example, if you have 50% invested in the Growth plan, and 50% invested in the Cash plan, your balance will change over time.
During times of high volatility, Cash tends to perform better and you might end up with 30% invested in the Growth plan and 70% invested in the Cash plan. On the flip side, during times that the stock markets are performing well, your Growth plan will outperform your Cash plan. The mix might then be 70% versus 30% in favour of the Growth plan.
Keep track of your investment mix
It’s important to review your investments from time to time to make sure the mix you have still meets your needs. If you have set a plan at the start, it is worth sticking to that plan over the long term. Investing in super or an allocated pension is generally seen as a long-term investment. While there is no fee involved in changing your plan, doing it too often may not deliver the best results for you.
Investing is a complex area and we recommend you seek financial advice when you need it.
Find the right level of risk for you
You need to be comfortable with the decisions you make in relation to your investment plan.
Finding the right level of risk for your investment plan you might depend on:
- How long you expect your money to remain invested
- What your investment goals are
- How much risk you’re willing to take
If you feel uncomfortable when the markets go down from time to time, then reducing your risk will probably work for you.
On the other hand, if you are fine with short-term downturns and willing to wait for the markets to likely recover over time, then including a higher-risk option among your investments would suit you better.
How to change your investment plan
If you’ve decided you want to change your investment plan, our step-by-step instructions can make it easier for you.
Need help
- Call us on 13 43 72
Thank you for printing this page. Remember to come back to gesb.wa.gov.au for the latest information as our content is updated regularly. This information is correct as at 27 April 2024.