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Navigating superannuation volatility in retirement planning

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By Capital Partners Wealth Planning

Recent comments from the APRA on the turbulence of superannuation aren’t likely a surprise to anyone who follows financial markets. Interest rate rises, challenges in supply chains and the war in Ukraine can all be attributed to such volatility.

According to Wealth Adviser and retirement expert Damon Sugden, doomsday articles are often carefully written to incite a fear factor. The article in question is a regular APRA report, to which Damon quickly points out that headlined 15 billion dollar reduction equates to only a 0.5% decline. It’s a sobering reminder of the power of copy and our emotions!

Still, what does the volatility mean for those approaching and living their retirement years?

Damon explains that to one extent, this is normal for the superannuation industry. It provides a reminder of the nature of markets that they can give, take away and give back again. According to Damon, sitting tight and holding the course is a wise consideration.

For retirees who have just begun to access their superannuation savings, Damon cautions there is the potential for adverse outcomes. Reason being because this is when we are most subject to being impacted by a poorly timed market decline or becoming reliant on our nest egg to support our lifestyle.

Combined with reaching out to your adviser for support, Damon explains that protecting our nest egg requires both a disciplined investment strategy and a healthy mindset.

Damon explains that retirees should consider the income they require in the short, medium, and long term. A firm believer that it is never too early to begin retirement planning, he shares that ambitious retirees will benefit from a well-structured portfolio and disciplined management. He also emphasises that retirement plans should account for our broader life, stages of living and care requirements in the future.

Damon conveys that living the retirement you deserve is achievable. We all just need to be open to leaning on the support of those with the know-how and experience to assist.

The information provided on this site is of a general nature only and may not be relevant to your particular circumstances. The circumstances of each investor are different and you should seek advice from a financial planner who can consider if these strategies and products are right for you.

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