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.

Learn about your investment options

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.

If you have 50% invested in the Growth plan and 50% invested in the Cash plan, your balance will change over time

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.

Learn about changing your investment plan

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 much super you have
  • How long you need your money to last
  • How much risk you’re comfortable with

If you feel uncomfortable when the markets go down from time to time, then reducing your risk probably fits better with you.

On the other hand, if you are fine with short-term downturns and willing to wait for the markets to probably recover over time, then including a higher-risk option among your investments would work for you.

How to change your investment plan

If you’ve decided you want to change your investment plan, you can follow our step-by-step instructions on how to fill in the investment choice form.

How to change your investment plan

Page last updated 21 May 2020