Are You Too Conservative With Your Super at 65?

If you are 65 and your super is moving into conservative investments, you need to understand why.
Many industry funds use lifecycle investing. As you age, your money is automatically shifted from growth assets like shares into conservative ones. It sounds sensible. But here is the problem.
If you are a couple aged 65, there is around a 62% chance one of you lives into your 90s. That means you are still a 25 to 30 year investor.
Being too conservative at 65 is not playing it safe. It is slowly eroding your purchasing power over three decades.
Yes, growth assets come with short term volatility. But those periods are generally short. And if you are still a long term investor, which most retirees are, you need your money working like one.
Understand where your super is invested and why. Do not assume the default is right for you.
And whatever you do, stop checking it so often. You will miss all the ups and downs that cause people to make poor decisions.
General advice only. Please consider your personal circumstances or speak with us before acting.
Robert Goudie is an Authorised Representative (No. 235974) of Consortium Private Wealth Pty Ltd (AFS Licence 495401)