Investors 'need to think long term'

With the Australian stock market still looking decidedly shaky, many investors may be rightly anxious about the health of their retirement savings.

But global finance group Watson Wyatt has pointed out that while many people may be opting to take a more cautious approach with their super, playing things to safe could create serious problems in the future.

The group urges people to be mindful of "longevity risk", where pensions and savings are insufficient to provide support for the duration of retirement as people live continually longer.

"To help combat longevity risk, retirees will generally benefit from maintaining a meaningful exposure to growth assets during their drawdown phase," said Watson Wyatt principal and consulting actuary Nick Callil.

So while people may be keen on the safety of investments such as term deposits and bank savings accounts, it may be worth keeping your toes in the stock market to benefit from the higher returns often associated with shares.

Indeed, the Australian reported earlier this week that super fund managers have been going on a spending spree recently as they look to snap up shares at heavily discounted prices.

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