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Sharemarket plays havoc with retiree nest eggs

Posted on Jan 22, 2016

SHARE market turmoil is denting retirement nest eggs, but workers and retirees are being urged not to panic, according to the Herald Sun’s John Dagge.

In the article, Pitcher Partners wealth management head Charlie Viola said retirees should review their income stream every six to 12 months.

“Understand what you are drawing out to meet your living expenses versus what your portfolio is actually able to generate,” he said. Mr Viola said retirees should have a cash buffer — 10 to 15 per cent — as part of their nest egg to ensure they did not need to sell out of stocks at the bottom of the market for living expenses. “There are levels of concern about equity markets, but we have been here before,” he said. “There is no reason to be more fearful now than any other point in time.”