Retirement Lifestyle Portfolios

The Lonsec Retirement Lifestyle Model Portfolios have been constructed using an objectives-based approach, considering those risks most relevant to retirees. Importantly, they can be easily implemented within a typical financial planning process.

The Retirement Lifestyle Portfolios consist of three portfolios, all of which can be mapped to Lonsec’s Risk Profiles in terms of growth/defensive asset splits.

The primary objective of the Retirement Lifestyle Portfolios is to achieve attractive and sustainable income returns through a diversified portfolio of managed investments.

Lifestyle Portfolios Income Capital Returns

All three portfolios have an income objective of 4% per annum. The income objective refers to the minimum expected income and is based on an average income drawdown rate in retirement.

There is a natural trade off between income, capital return and portfolio volatility. The suggested minimum investment horizons have been determined based on assessing the probability of achieving the minimum income objective with a reasonable amount of certainty.

The portfolios have been constructed to provide advisers flexibility in terms of meeting retirees' income and capital objectives, which will vary depending on individual circumstances and lifestyle goals.