Investing in retirement

Investing in retirement can be tricky. The fundamental rules of investing still apply but decisions around timeframes become paramount.

On the one hand, you should still be investing for the long term. You should be planning a long and healthy life. Even at retirement age, you should be looking at a 20-year-plus horizon. On the other hand, you're going to need to access your money during that time – you can't have it all locked up. You won't always have the luxury of waiting until markets recover if they take a tumble.

What you need then, is the right combination of defensive and growth assets, which is probably not too different from how you're invested now. You should generally consider maintaining some exposure to growth assets (like shares) so that your portfolio continues to grow over the longer term. You should also be considering the inclusion of some defensive assets that can be accessed on a day-to-day basis for living expenses and which can be relied on in case markets dip.

Speak to your financial adviser for guidance on which assets should be included in your portfolio and in what proportions. You should also revisit your risk profile to make sure that you're comfortable with the level of risk you're taking on now that you don't have a salary to supplement your investment income.