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Typical goals and risks

What are people's goals?

Throughout their lives, your clients will have many different lifestyle and financial goals that they would like to achieve. Although people have different goals, there are some key goals that many Australians have in common, especially when it comes to retirement. However, the biggest goal of all is to be able to live a happy and healthy life.

What are the typical goals people have in their lifetime?

This video must be taken in its entirety and any given chapter viewed in isolation does not represent the entire message.

The picture of retirement in Australia

It’s no secret that Australia has an ageing population and ‘Will I have enough in retirement?’ is the number one question. Download this infographic which explores the current picture of retirement in Australia.

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This video must be taken in its entirety and any given chapter viewed in isolation does not represent the entire message.

The picture of retirement in australia

This video must be taken in its entirety and any given chapter viewed in isolation does not represent the entire message.

Working longer and living healthier

If Australians are living longer, they naturally will need to be working longer. But how healthy we will be in the later years of our working life? Will we be able to work until we qualify for the age pension, which is proposed to rise to 70 years old by 2035?

Formulating a financial plan that ensures that retirees have enough money to live off is important, but ensuring they stay fit and healthy in their older years is as important.

READ THE FULL REPORT

DOWNLOAD THE INFOGRAPHIC

Importance of mitigating key risks

Investors face a number of risks over their lifetime, but longevity, sequencing and inflation risks are three key risks that are particularly pertinent to retirees. When looking at investments for your clients, it is important to bear these risks in mind.

Longevity risk

The risk of your clients outliving their money. This is increasingly a problem in Australia as people are living longer.

Sequencing risk

The risk of a big downturn in markets (such as the Global Financial Crisis) just before or after your clients retire, which is generally the point of maximum wealth in their lives. A 20% fall at this stage hurts more than any other stage of life.

Inflation risk

The risk of the purchasing power of your clients’ money falling. Purchasing power is likely to halve in retirement if enough capital growth is not sought. This risk is gradual though, it is not a one-off like sequencing risk.

Market risk

The risk of general movement in financial markets over time. This risk can be reduced through portfolio diversification.

Behavioural bias risk

The risk that investors allow their emotions to drive investment decisions. For example, selling out of growth assets after a fall, this is often the worst thing to do. A long term view of investing should be taken.

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AMP's Australian operations are bound by the current Australian privacy legislation which outlines how organisations should manage and use personal information collected and held about their customers. AMP Privacy Policy

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AMP's Australian operations are bound by the current Australian privacy legislation which outlines how organisations should manage and use personal information collected and held about their customers. AMP Privacy Policy

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