Aussies worried they do not have enough for retirement
Portfolio construction approaches need to evolve as two-thirds of Australians believe they are not prepared for retirement, according to Fidelity International.
The firm’s latest research paper with the Financial Planning Association of Australia (FPA) and CoreData, found many Australians were worried they were not on track to have enough money for a retirement they could be happy with.
Fidelity International’s head of client solutions and retirement, Richard Dinham, said advice was invaluable in helping retirees understand how long their money would last and what steps they could take to minimise the risk of outliving their savings.
“…a successful retirement involves more than just money – there are some things that money can’t buy such as being healthy and having realistic expectations of what lifestyle can be achieved,” he said.
“Advisers that understand the types of risk specific to retirees, the fears and challenges they face in retirement, how their needs differ from accumulators, and the strengths and weaknesses of different retirement investment strategies, will be best placed to help their clients throughout their retirement.”
Dinham noted the research paper, ‘Building Better Retirement Futures’, outlined and looked at the pros and cons of different strategies advisers could use with retiree clients such as keeping the same strategy as in accumulation phase, transitioning to a more conservative asset allocation, simple bucketing, more complex bucketing, or income layering.
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