Is your retirement just around the corner? Then it’s time to make your super work harder by avoiding these common super traps.
1. Outdated investment strategies
As you approach retirement, you should revisit your investment strategy. But that doesn’t necessarily mean putting all your money into defensive assets like cash. Diversification is the key to smoothing out the inevitable bumps when economies, sectors and assets rise and fall. A well-diversified portfolio includes a good mix of asset classes — such as cash, fixed interest, property and shares.
2. Over-insurance
Just as your investment needs change, so will your insurance requirements. For instance, if you’ve eliminated or significantly reduced your debts, you may not need as much life insurance or income cover as you once did. And if you’re an empty nester, you’re insurance needs are likely to be very different to those of a young family’s sole breadwinner.
Your lifestyle might have also changed over the years — for example, you may no longer engage in high-risk work activities or leisure pursuits like skiing. So make sure
