Financial advice ‘the key’ to happy retirement
Unstable markets are leaving retirees confused and struggling to make informed financial decisions, according to Colonial First State (CFS).
The Australian wealth management giant expects that retirees who meet with a financial advisor and put financial planning practices in place can avoid undue financial stress.
"People who are about to retire should definitely talk to a financial adviser about managing market volatility so they can be confident in their retirement plans," said CFS general manager of product and investments, Peter Chun.
"A good adviser can develop strategies that also help retirees enjoy an active retirement in the early years and have a plan in place to meet the expenses that come with increased health and aged care costs later in life."
Chun said that qualified advisors can help prospective retirees avoid detrimental decisions, as well as manage volatility by using varying fund strategies like blending market-linked pension products with annuities in retirement income portfolios.
"People expect to receive income from their super savings for decades to come, but fear of volatile markets can drive poor decisions, like selling out at the worst time and realising investment losses," he said.
"As markets recover, it becomes evident that reacting to short-term volatility can get in the way of meeting longer-term needs."
"Trying to time markets and responding to every market movement can leave people considerably worse off."
AUTHOR
Hope William-Smith
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