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The 3 R’s: recession, retirement & resilience

RETIREMENT

07/10/2020

With the economic downturn now a reality, many older Australians are feeling anxious about the impact the recession will have on their retirement and lifestyle plans. Here’s a quick guide to help you work through the extraordinary challenges of 2020.

Re-examine the numbers

While the environment has certainly changed, the criteria for determining your readiness remains the same. Remove uncertainty by revisiting your strategy and crunching the numbers again. Only then will you know if retirement remains a feasible option or whether you might be better off waiting a bit longer.

Take the transition to retirement approach

It can be nerve-wracking ending an income source altogether. An alternative option involves scaling back your work hours. You can then use a transition to retirement income stream to support you as you continue to work part-time, while dipping into your super benefits to supplement your income. This is a great option if you want to ease into retirement, reducing your work hours without sacrificing your income.

Choose the right investment option

Many assume after retiring, they no longer need to grow their super savings. In fact, it’s likely your retirement will span a third of your life, so investment decisions still need to be made. Now is a good time to review your investment options to ensure they are matched to your financial goals, time frame and risk appetite.

Minimum pension drawdown reduction

In order to provide retirees with more flexibility during this period of market volatility, the Australian Government has temporarily halved the minimum pension withdrawal amounts. This is particularly helpful for retirees who need to manage the impact of volatile financial markets on their retirement savings.

Give yourself a little TLC

It’s not uncommon to feel nervous and unsure when planning for retirement. Planning the next stage of your life during a recession can amplify those sentiments. Remember to surround yourself with people who spark joy and offer unconditional support as you transition to this next big life stage.

Seek professional financial advice

Often people don’t seek advice to help them navigate financial challenges at times like these. If you’d like support to help you weigh up your retirement options, the VISSF Advice Team can provide solutions to meet your needs, over the phone - at no cost.

To set up a telephone appointment, hover over the Advice menu option at the top of you screen and select 'Book Appointment'. Then, simply follow the prompts to arrange a time that suits you.

Ready, set, retire booklet

Your super savings will play an important role in funding your life after work. Learn how to make them thrive as you create a reliable income stream in retirement.

Click the Download Now button below to access your copy of our new Ready, set, retire booklet or call our Client Services Team on 1300 660 027 weekdays between 9am and 5pm to receive a copy in the mail.

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