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How to choose an investment option for your super pension

If you think all the hard work when it comes to growing your retirement income is over once you leave the workforce, unfortunately you’re mistaken, as your savings still need careful attention.

In fact, it’s essential to keep your savings working hard so they continue to grow enough to provide you with a solid income for many years once you are no longer working. 

If you don’t keep your nest egg growing, you may find you run out of money and are forced to rely on the Age Pension in the latter years of your retirement.

For most of us, the investment returns we achieve during our retirement years are actually more important than those we receive while we’re still working.

Why choosing the right investment option for your super pension matters

Selecting an appropriate investment option when you start a super pension or income stream is critical. 

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  1. ROSS YOUNG Avatar
    ROSS YOUNG

    don’t forget to check the cost – so called management expense ratio of the investment base you are considering. Typically the actively managed ‘high growth’ options are going to cost you a higher percentage of your investment. There’s a fair chance the returns will be more volatile and may do no better overall than a base that is more passively managed. You need to read the product disclosure info supplied by your super fund to get an understanding of how your money is going to be managed under the option you are thinking about, starting with whether managed in house or contracted to an external fund manager.

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