Investing your pension

You’ve made it, you’re in retirement and you can do all the things you enjoy like sleeping in, fishing, golfing, camping, spending time with your grandkids or whatever ‘floats your boat’ - all without having to take annual leave or wait for an RDO!

At this stage, you’ve most likely transitioned your super to a pension and are receiving regular pension payments.

In the lead-up to retirement, investing your super was all about growth and building up enough to set you up for retirement – too often people think that’s the endpoint for your investment strategy. But how you invest your pension is just as important, even more so as contributions stop coming in. 

Here are some factors to consider when it comes to investing your pension. As always, it’s a good idea to get financial advice along the way. 

A growth and defensive strategy

When you retire, be it at age 60, 65, 70 or whenever you choose to, your money is still invested and needs to work for you for another 20+ years. With that in mind, depending on your pension balance, you still need to invest with growth in mind, but strike a balance with preserving your pension. Coming up to retirement is a good time to review your expected income needs, your investment strategy and consider your appetite for risk going forward. 

How you invest your pension will affect your overall balance, how much you have available to withdraw each year and how long your pension will last. Investment experts say that 60% of your retirement income comes from the investment earnings you make in retirement. That’s a significant portion, so getting your investment strategy right is key. 

Managing risk, as important as ever

Managing risk becomes even more important as your head into retirement. Diversification is a key strategy when it comes to managing risk. It basically means spreading your money (and risk) across different asset classes. If one asset class or investment falls in value, others that are performing well may make up for the loss or at least reduce the impact. 

To help you spread your risk, there are a number of diversified options available through Maritime Super with different risk/return profiles for you to choose from. The level of risk you’re prepared to take for a given return really depends on you, but the shorter your timeframe the less risk the better.

Get expert advice

Your pension is it, it’s your income in retirement, so investing it right and making it last as long as possible should be a key priority. It’s worth talking to one of our financial planners to ensure you invest your pension to help you make the most if it.

We’re here to help, no matter how simple or complex your question, simply call 1800 757 607 to speak to Member Services or make an appointment with a financial planner.

The information on this page has been issued by Maritime Financial Services Pty Limited (MFS). It contains general information that doesn’t take into account your individual objectives, financial situation or needs. It’s important to consider how appropriate this general information is in relation to your situation before making an investment decision. We recommend that you seek financial advice before making any decisions regarding your super or investments. The information on this page is current at the time of publishing.