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A new approach to retirement planning

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About John

I'm a financial adviser/investor of 25 years, specialising in minimising the impact of black swan events. Black swan events such as the GFC can be devastating and very difficult to predict.

I’m going to stick my neck out just a bit and say retirees have had a raw deal over the past couple of decades.

Nothing new there, you might say. But what I'm referring to is the advice available to retirees when it comes to investing their superannuation to produce an income stream.

Retirees have copped a rough time in recent years.

Retirees have copped a rough time in recent years. Picture: Shutterstock

And no, this is not another diatribe against financial advisers. The problem lies much deeper.

Read more from John Cameron: Nasty redundancy surprise for the over-65s

The problem lies with the fact that the research and theory that advisers (and I am one) have has been developed with accumulators in mind.

The research has been conducted deep within the worlds of universities and academia, over several decades, and is heavily slanted towards accumulators.

The problem is, that when you retire and start drawing on your money, the dynamics and timeline change totally.

New approach

I believe it's time for a new approach to planning retirement income, which is based on four principals:

  • It must be based on evidence. This may sound self-evident, but many of the models currently used in planning are far more influenced by complex theory than hard evidence.
  • Common sense. Once again, current models often fail this simple test, and are far more the products of complexity and theory.
  • It should be as simple as possible, but not too simple.
  • It should provide a basis for strategic planning. In other words, a foundation for long-term planning that can withstand the day-to-day chatter of the market. Such chatter is often full of opinions rather than facts, and contains little new information.
  • ---------------------------------------------------------------------------------------------------------

    John Cameron is one of the best qualified, most experienced, respected financial planners in Australia. Call now for a no-cost consult. (08) 9322 7818.

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