Retirement
We are living longer, but can we afford it?
Many Aussies struggle with day-to-day expenses alone, putting a sustainable retirement at risk for a whole generation of Australians.

We are living longer, but can we afford it?
Many Aussies struggle with day-to-day expenses alone, putting a sustainable retirement at risk for a whole generation of Australians.

With over 5 million Baby Boomers – those born between 1946 and 1964 – the future holds 25 plus years without an income through employment.
The risk of running out of funds is currently being compounded by lower investment returns through traditional safe havens – treasury bonds, cash and deposits in the bank – and property prices falling in the major capitals.
Further, market research consistently shows that many Australians are struggling with day-to-day expenses alone.
Retirees are faced with a real dilemma of how can they fund the remaining years, and not risk losing their hard-earned cash.
Lessons from the GFC
Loss aversion is still a powerful motivation for many Baby Boomers, who were negatively affected when the markets crashed.
The idea of “buy the dips and sell high” or “time in the market” is not ideal for most, according to Pentalpha Investment Management.
Retirees instead should be focused on income-producing assets, as opposed to trying to beat or pick the market with big capital gains.
Diversification is key
For the corporate regulator, portfolio diversification is a key strategy to mitigating risk for a retirement income portfolio.
“Assets that carry a higher risk should deliver a higher reward but are also likely to have more volatile returns over the short term. You can offset some of this risk and volatility by including assets that have lower risk and return but lower short-term volatility,” ASIC said.
“In addition, markets for different asset classes peak at different times, which means when returns for one asset class are high, returns for a different asset class may be low. By having your funds spread across a number of different investment types, your overall returns will be less volatile as low returns or losses on one investment are offset against high returns or gains on another,” ASIC said.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author

About the author


Retirement Planning
Retirement time bomb requires complex thinking
The majority of Australia’s super assets now sit in the hands of retirees and pre-retirees, but many require more nuanced investment strategies to achieve the lifestyle they want in retirement, a ne...Read more

Retirement Planning
Why some Millennials are struggling to save for retirement
Millennials are struggling to save for retirement as they face challenges that are different from other generations. What are these reasons? ...Read more

Retirement Planning
Retirement Income Review cornerstone ‘not for everyone’
Despite being the cornerstone of the Retirement Income Review, an expert has highlighted that downsizing and withdrawing equity from a property might not be the solution for all older Australians. ...Read more

Retirement Planning
Effective tips that can help Millennials retire faster
Millennials have changed the cultural and societal landscapes of the world. This is unsurprising, given the fact that they are the best educated and most diverse generation in history. ...Read more

Retirement Planning
What you need to know to get ahead financially
Australians looking to get ahead are being advised to analyse their financial situation, set financial goals and reduce debt whenever possible. ...Read more

Retirement Planning
How to adjust your wealth strategy during COVID
Investors are being urged to be conservative about spending, reduce debt and be careful of assets that are supported by government spending, as they look to adjust their wealth strategies during the f...Read more

Retirement Planning
Should older Australians downsize their property?
Older Australians face the dilemma of not being confident about their retirement outcomes, but are among the wealthiest retirees in the world due to a large proportion of their wealth being tied up i...Read more

Retirement Planning
Self-funded retirees ‘hung out to dry’ by 2020 budget
The Association of Independent Retirees has slammed last night’s federal budget release, accusing the government of overlooking older Australians in its post-COVID-19 recovery plans. ...Read more

Retirement Planning
Retirement time bomb requires complex thinking
The majority of Australia’s super assets now sit in the hands of retirees and pre-retirees, but many require more nuanced investment strategies to achieve the lifestyle they want in retirement, a ne...Read more

Retirement Planning
Why some Millennials are struggling to save for retirement
Millennials are struggling to save for retirement as they face challenges that are different from other generations. What are these reasons? ...Read more

Retirement Planning
Retirement Income Review cornerstone ‘not for everyone’
Despite being the cornerstone of the Retirement Income Review, an expert has highlighted that downsizing and withdrawing equity from a property might not be the solution for all older Australians. ...Read more

Retirement Planning
Effective tips that can help Millennials retire faster
Millennials have changed the cultural and societal landscapes of the world. This is unsurprising, given the fact that they are the best educated and most diverse generation in history. ...Read more

Retirement Planning
What you need to know to get ahead financially
Australians looking to get ahead are being advised to analyse their financial situation, set financial goals and reduce debt whenever possible. ...Read more

Retirement Planning
How to adjust your wealth strategy during COVID
Investors are being urged to be conservative about spending, reduce debt and be careful of assets that are supported by government spending, as they look to adjust their wealth strategies during the f...Read more

Retirement Planning
Should older Australians downsize their property?
Older Australians face the dilemma of not being confident about their retirement outcomes, but are among the wealthiest retirees in the world due to a large proportion of their wealth being tied up i...Read more

Retirement Planning
Self-funded retirees ‘hung out to dry’ by 2020 budget
The Association of Independent Retirees has slammed last night’s federal budget release, accusing the government of overlooking older Australians in its post-COVID-19 recovery plans. ...Read more