Make the money last
Uncertainty is the new normal. For those in the lead-up to retirement, the coronavirus pandemic couldn’t have come at a worse time. Many pre-retirees are being forced out of the workforce and having to come to grips with the complex retirement system overnight.
To add to their woes, super balances have taken a massive hit, leaving financial plans in disarray. Others, who have held onto their jobs, hope to work longer to recoup the losses.
If there’s one message in all of this, it’s that being disengaged isn’t a viable plan.
However, super’s many rules and endless jargon act as a serious barrier. It is especially challenging when members need to roll over into pension mode.
While there is a regulated, low-cost default option in accumulation phase, there isn’t one in pension mode. People are left to choose an investment product from a long list
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