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This guide shares some key insights and research into money and retirement, to help you look forward with confidence.
Even if you don’t have a direct investment in shares, a portion of your money in your super or account-based pension is generally invested in the share market. Shares are considered to be a higher risk investment because share markets can be volatile. Whilst there is the potential for greater gains, there can also be greater losses.
When the share market goes up, the value of your investments should increase. But when the share market falls, you earn negative returns and your investments (the money in your super for example) fall in value.
A fall in the value of your super or savings could mean you outlive your savings or your money runs out sooner than planned. Falls in the share market can have a bigger impact in retirement because:
Retirees have less time to recover from poor investment returns and may not be able to take advantage of lower share prices. So what can you do?
