How to invest in retirement
When you’re retired, investing is different to investing while you are still working and adding to your super. Generally, once you retire, your goals change. You want a regular reliable income, which usually means you might want to take less risk when it comes to investing.
That approach makes sense, but it’s also worth considering how long you might live and how long you need your money to last. Having it all invested in the Cash plan over decades may not provide the growth you need for your money to last.
Your investment options
Because your needs are different, we offer you more options when it comes to choosing an investment plan.
In our Retirement Income Allocated Pension you still have similar options as you do in your super. This means you can choose a Readymade plan which invests in a range of different asset classes, or you can create your own combination of asset classes with Mix Your plan.
There’s also one more option. You can invest part of your money in the Cash plan, and the rest of your money in another Readymade plan.
Decide which investment plan suits your goals
Ben is 62 years old and is fully retired. He used a life expectancy calculator which told him his life expectancy is 83, so his super probably needs to last for around another 21 years.
While he was still contributing to super, he had some money invested in Shares, so he is familiar with the markets going up and down.
Ben’s investment plans
In retirement, Ben has decided to be a little more conservative in his investments. He has put around three years’ worth of income payments into the Cash plan and has invested the remainder in the Balanced plan.
Ben still wants to achieve some growth with his money, but he wants to make sure that if the markets are not doing so well he does not need to touch the money in his Balanced plan. All of Ben’s income payments are coming from his Cash plan.
Everyone is different, and what is right for you might be quite different from what is right for Ben. It is important to consider your investment personality and adjust your investment plan in line with how much risk you are willing to take.
Change your investment plan to match your goals
There are a number of things you should consider when changing your investment plan. We’re here to help you understand your options.
How to change your investment plan
If you’ve decided to change your investment plan, our step-by-step instructions on how to fill in the Investment Choice form can make it easier for you.
Review your investments
Over time, your goals may change, and you might want to review your investment plan to make sure it still meets your needs.
If you’re invested in more than one plan, you might need to check how your investments are performing to make sure it is still in line with your original selection.
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