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.*
*Please note, should you choose to meet with one of our planners and decide to not obtain personal advice, no additional fee will be payable. However, fees may apply should you choose to proceed to personal advice. Your financial planner will discuss any fee payable when meeting with you and, if a fee is applicable, will advise you of the fee should you decide to proceed with obtaining the advice. Active Super has engaged Industry Fund Services Limited (ABN 54 007 016 195) (AFSL No 232514) (IFS) to facilitate the provision of financial advice to members of Active Super. Advice is provided by one of IFS’ financial planners who are Authorised Representatives of IFS. Fees may apply. Further information about the advice services that can be provided is set out in the relevant Financial Services Guide, a copy of which is available for download at www.activesuper.com.au or by calling 1300 547 873. IFS is responsible for any advice given to you by its Authorised Representatives.
Any advice in this article is general only and has been issued by LGSS Pty Limited (ABN 68 078 003 497) (AFSL 383558), as Trustee for Local Government Super (ABN 28 901 371 321) (‘Active Super’). The advice does not take into account your personal objectives, financial situation or needs. Before making a decision about the product, you should consider the appropriateness of the product having regard to these matters and the relevant PDS and TMD available at www.activesuper.com.au or by calling us on 1300 547 873. If you would like advice that takes into account your personal circumstances, please contact a financial adviser.
