What next for self-funded retirees?
Wednesday, May 13th, 2009
Self-funded retirees who are invested in the sharemarket have arguably been the hardest hit by the global financial crisis.
Many may now be wondering if they should move their account-based pension into a more conservative investment portfolio, which contains less growth assets such as shares and property.
So we went back through history to see the impact that switching to a more conservative portfolio would have had, if done after a major market fall.
We also outline some strategies you could discuss with your financial adviser to help you weather the storm.
What is an account-based pension?
Before we reveal the lessons we can learn from history, we thought it was worthwhile going back to basics to explain how account-based pensions work.
An account-based pension enables you to invest your superannuation savings and receive a tax-effective income to help meet your living expenses.
