WE DON’T SET AND FORGET, WE REFINE AND RESET

Circumstances change – your retirement plan should too

If you are dependent on your superannuation and investments for your retirement income, the current economic downturn may not be the time to set and forget your financial plan. You should seek clarity on your financial position and the diversity of your investment portfolio to reduce risk and preserve your retirement nest egg.

You may wish to consider suspending your pension withdrawal plans from your superannuation. By keeping more money inside superannuation and exposed to the market, portfolio values can have more time to recover as markets eventually resume their normal upward trend. This may not be possible for all investors.

We explain why in this article

Some companies have recently reduced their dividend payments in the current environment which is challenging for people who rely on them as part of their retirement income. What options do you have? It may feel like the obvious move is to drop out of the equity market and seek income elsewhere. While every investor’s needs are different and should be discussed with a professional, there are strong arguments against this strategy.

Stella McMullen, Senior Research Analyst at Perpetual Private explains in her article


There’s never a good time for poor investment performance but some times are worse than others, and the worst of all times is near the point of retirement. This is when your exposure to markets is highest because you are risking the savings you have built to fund your retirement. During market downturns like this one, if you can reduce withdrawals and stay invested, you may be able to mitigate the impact on your retirement portfolio.

Kyle Lidbury, Head of Investment Research at Perpetual Private, explains in his article.

When share markets fall and investors panic, a stampede for the exit often sees people crystallising losses to their superannuation and investment portfolios. They sell at lower valuations and are forced to buy back into the market at higher prices once markets rebound. Staying invested through downturns can help protect your capital for the long-term and also presents opportunities for some smart buys along the way.

Perpetual Private’s National Investment Specialist, Andrew Garrett, explains in his article.

HERE'S WHAT OUR CLIENTS HAVE TO SAY

97%* of Perpetual Private clients are happy with the quality of their financial advice.
*Perpetual Net Promoter Score Survey (research conducted by Woolcott Research).

OUR SERVICES

 

RETIREMENT

Your retirement is a new chapter in your life which may have been complicated due to the current economic downturn. You need to think about the financial implications regarding your retirement income stream and tax strategy, but also lifestyle aspects such as your place of residence and whether you choose to retire completely or work part-time. At Perpetual, we help you think through all the issues – personal and financial.


Superannuation

A key component of your retirement plan is likely to be your superannuation. During challenging economic times like these, it is important to identify the best ways to access the funds you need without compromising your nest egg for the long term. At Perpetual, we can help you to achieve the right balance in a tax effective way. If you prefer to manage your own money, we can help manage the administrative burden of your Self-Managed Super Fund (SMSF) or act as trustee for your small APRA fund (SAF).


Investments

Our approach to retirement advice starts with a deep dive into what you want from retirement –financially, in terms of lifestyle and across key areas like health, family, charitable or part-time work and much more. We then develop a sophisticated financial plan backed by the research and analysis of our in-house and award winning investment team.

For most people, the nature of a perfect retirement changes significantly over time – so a crucial part of our retirement advice is regular reviews to make sure your strategy stays on track and adapts to your changing needs (and changes in the economy, legislation or investment markets).

OUR EXPERTS – IN THEIR OWN WORDS


Kyle Lidbury

“I am proud to lead a team of experienced investment researchers to ensure our clients investment portfolios remain balanced and diversified as circumstances change, particularly as this latest crisis plays out through markets and economies.” - Kyle Lidbury, Head of Investment Research at Perpetual Private

Catherine Chivers

“People are understandably concerned about their retirement savings in the wake of the COVID-19 pandemic. In uncertain times like these, a quality financial adviser can help you assess your financial position and make the right investment and superannuation decisions for your long-term benefit.” - Catherine Chivers, Senior Manager Strategic Advice at Perpetual Private

YOUR BEST INTERESTS AT HEART

 

INVESTMENT PHILOSOPHY

When it comes to retirement investing, our ‘protect and grow’ strategy works to minimise risk without sacrificing returns. To balance your need for regular retirement income with the need to extend the life of your retirement capital.

To achieve this, we manage risk by spreading your funds across countries, across asset classes, within asset classes and across different fund managers. We seek to ensure inflation doesn’t erode your capital (and your ability to generate income in the future) by investing in quality growth assets as well as income producing options.

Our advisers and investment specialists ensure your retirement portfolio is structured to meet your specific needs and that all the assets we invest in on your behalf pass Perpetual’s stringent quality investment filters.

Download Perpetual Private’s investment philosophy fact sheet


EARNING YOUR TRUST

Perpetual is an ASX-listed, diversified financial services company which has been serving Australians since 1886 when it was established as a trustee company by a group of businessmen including Sir Edmund Barton, later to be Australia’s first Prime Minister.

That trustee heritage – and the culture it created around putting clients first – is what makes Perpetual unique.

We have been earning the trust of our clients for more than 130 years and pride ourselves on our long-standing client relationships – some of which span five generations.


HOW WE WORK WITH YOU

Our approach to retirement advice starts with a deep dive into what you want from retirement –financially, in terms of lifestyle and across key areas like health, family, charitable or part-time work and much more. We then develop a sophisticated retirement plan that is aligned to those requirements.

It is at this point that the breadth of the Perpetual service becomes important. We will direct you to a wide range of external service providers if we believe they will best meet your needs.

But within our walls we can also offer you access to specialists in investing (across all asset classes), superannuation, philanthropy, business advisory services and tax and accounting. Everything you need to execute a retirement plan that balances your financial, lifestyle, family and professional needs.

 

TAKE YOUR FIRST STEP - CONTACT US ON 1800 631 381

Your life changes. The world changes. Your financial plan should too. Perpetual’s expert financial advisers can help ensure your investment and super strategy remains relevant for the long term. Our advice endures because our relationships do.

Privacy laws apply to our handling of personal information and we collect, use and disclose your personal information in accordance with our privacy policy.

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Perpetual Private advice and services are provided by Perpetual Trustee Company Limited (PTCo) ABN 42 000 001 007, AFSL 236643. This webpage contains general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial or other adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Perpetual Private advice and services are provided by Perpetual Trustee Company Limited (PTCo) ABN 42 000 001 007, AFSL 236643. This information was prepared by PTCo. To view the Perpetual Group's Financial Services Guide, please click here. The information is believed to be accurate at the time of compilation and is provided in good faith. This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practice or law that is often complex and can change. This article may contain information contributed by third parties. PTCo do not warrant the accuracy or completeness of any information contributed by a third party. Any views expressed in this article are opinions of the author at the time of writing and do not constitute a recommendation to act. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. Past performance is not indicative of future performance.