Financial security and retirement

Staying financially secure in retirement requires careful planning at the best of times, let alone when the community is experiencing a cost-of-living crisis. Whether it be rising interest rates, inflation or house prices, Australians are under pressure when it comes to planning for their financial future. 

There are some strategies that may help you navigate the current environment and protect your long-term financial security to help you live your best life. 

Investing wisely 

Research from late 2023 found that 68 percent of Australians set and forget their superannuation investments with many people unaware what their super funds are investing in. It’s important to think about what your goals and preferences for retirement are and whether your portfolio aligns with these aspirations. We offer the ability to choose your investment mix, or to opt for ‘hands-free’ investing – the default option that automatically adjusts your portfolio to suit your life stage within the accumulation scheme. Your goals may change over time, so if you are unsure of what approach is right for you, it may be worth speaking to one of our financial planners*. 

Remain informed

It may seem simple, but remaining informed on what is happening in the world is an important part of adapting to the changing cost-of-living trends. Not sure what interest rate rises mean? What is inflation doing to the economy? It all adds up. If you’re across what these issues mean and how you can use them to your advantage when it comes to investing in specific portfolios, it could set you up for a financially stable future.

Lifestyle choices

Although retirement may seem a long way away, it’s important to take into consideration how your lifestyle impacts your financial goals – now and into retirement. Consider what small luxuries are essential for you, and what you could do without. For example, cutting back on takeaway coffees can be a simple change that adds up over a year, and you could consider contributing this money into your super. ASIC’s Money Smart provides an easy-to-use budget planner tool that allows you to track your outgoings against income. This can help you to identify where you could cut costs.

Adapting to changing cost-of-living trends in retirement requires ongoing due diligence. Regularly reassessing your budget and adjusting as needed will contribute to your long-term financial security. If you are unsure whether you are on track to achieving the lifestyle you are after in retirement, seeking professional financial advice can be a good idea. 

Seek advice

If you require advice on your retirement needs, please contact one of Active Super’s financial planners. Feel free to contact us on 1300 547 873 or make an appointment to see how we can help.* 

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