You've worked hard to build your savings and you're looking forward to a comfortable retirement. At this stage of your investment journey, earning a secure ongoing income from your investment is probably a higher priority than trying to grow your investments further. If this is the case, you might want to move away from shares and property towards defensive assets such as cash and fixed interest.
But of course, everyone's needs are different so this might not be the right strategy for you. Depending on your own financial goals you might prefer a less conservative investment approach - especially if you're counting on your investments to last the rest of your life.
As you ease into retirement, your financial commitments might be winding down — especially if you’ve paid off your mortgage and your children have left home. This frees up your finances so you can instead focus on taking care of yourself.
Remember, your health care costs may become more expensive as you move through this life stage. So make sure your private health insurance covers everything you might need, but also check that you’re not paying for things you don’t, such as pregnancy-related services.
Although you may no longer need income protection cover, it may be worthwhile to hang onto your life, Total and Permanent Disability Cover (TPD) and trauma insurance. This will help make sure that if something happens to you, your loved ones will be financially protected, particularly if you have debts to manage.
If you’re thinking of updating your insurance arrangements, you can talk to a financial planner to discuss different types of cover and find out how much cover might be right for you.