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The ultimate post-retirement investment guide

How to make the most of your retirement income

When you move into retirement, a lot of things in your life change: your routine, your income, and probably your babysitting duties! 

One change that many retirees aren’t prepared for is the financial adjustments, which are arguably the most important to plan for. Particularly when your plan could mean the difference between relaxing or stressing out in retirement. 

You’ve likely been looking forward to your golden years for a long time now and unfortunately, you only get one shot.

So, how do you want to spend it? 

New hobbies, new adventures, new experiences? These things all cost money. 

But that doesn’t mean you can’t do them all in retirement. What it does mean is that you need an effective income plan.

Everyone deserves to spend their retirement experiencing the things they love. Nobody should have to give up the experiences they want because of money.

While there are many elements that make up a good retirement plan – a vital key to a comfortable retirement is your investment plan. Without a regular paycheque to rely on, investments are a way to secure a regular income without having to do the heavy lifting on your end.

Whether you are an investment rookie or a complete pro, your strategies are likely to change when you retire – and so they should!

Realistically, you should be reviewing your financial goals and strategies regularly – especially when you go through a big change like retiring. 

To make your money go the distance for your retirement, there are three things you can consider for a successful post-retirement investment plan.

Answer these 3 questions to create a suitable investment plan for your retirement:

1. What should you invest in?

When it comes to deciding where to place your investments, diversification is the answer, even in retirement. Whether you are considering property, or direct shares, a combination of asset classes invested in line with your risk tolerance (see below) is key to protecting your money and achieving your desired retirement lifestyle. 

It’s always a good idea to seek professional advice before making such important decisions about where do invest your money.

As you transition to retirement, you’ll be increasingly relying on your investments to deliver returns that you can live on. So, a diversified mix of assets to meet your short-term spending and long-term growth needs could be the best option.” – Vanguard Investments

2. Has your risk profile changed?

Identifying your personal risk bracket is essential to picking investments that you are comfortable with. 

To invest well, you need to find investments that fit your financial goals, investing time frame and risk tolerance.”
– moneysmart.gov.au

When you are nearing or already in retirement, your goals may have changed, your timeframes will most definitely change, and this may in turn, change how much risk you are willing to take. 

In retirement, you might consider a more conservative approach. When you’re younger, you generally have more time to ride out market highs and lows and recover from any potential losses. However, in retirement, you may not be willing to take as many risks with your money. Short-term security and reliable cash flow may be more important to you than making your money grow for the future. 1

3. Do you have access to enough cash to support you?

When you were younger, you potentially put money in investments to purposefully not touch and leave to grow. However, when you approach retirement, what is essential to consider is that you have access to enough money to support your living necessities for the short-term. 

Absence of a salary can be a bit of a shock to the system. You may find you have to lean a little heavier on your investments to financially support you. This is okay, that’s what they are there for.

Your investment portfolio in retirement should look to deliver a balance between your spending needs and capital growth over the long-term.2

Your investments should be set up to support your circumstances and cashflow. This may mean you need to adjust your current investments to allow you to both cover your spending costs for the short-term and provide for you in the long-term.  

We want you to feel confident and secure about your retirement

As one of Newcastle’s leading financial advice firms, we work with a lot of retirees looking to get the most out of their golden years. Newcastle is the perfect place to retire, with a relaxing holiday atmosphere, plenty of activities to suit all sorts of lifestyles, as well as big-city amenities. 

If you are approaching retirement, or are already part way into your retirement, ask yourself “is my financial and investment strategy the best one for me?”.

Your retirement plan is essential to get right and when it comes to your investment strategy, a financial planner can help you make the right decisions for you.

If you’re ready to make the most of your money, seek financial advice in Newcastle from NFPG. Our experienced Retirement Specialists can help you achieve your retirement dreams.  



1 www.amp.com.au/retirement/prepare-to-retire/retirement-planning-tips
2 https://www.vanguard.com.au/personal/education-centre/en/guides-topic/investing-retirement/comfortable-retirement 

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