Vanguard Australia

While retirees understandably fret when markets resemble a roller-coaster ride, their fears are misplaced. A new study shows that over the past three decades markets have performed strongly, the GFC, COVID, economic downturns and geopolitical events notwithstanding.

Vanguard Australia recently launched a superannuation product aimed at undercutting competitors, with a low-cost default fund option that adjusts automatically as savers age.

By following a simple practice known as dollar-cost averaging to buy shares or managed funds, investors can build holdings in assets in a non-emotional and disciplined way. Moreover, it may make good sense when share markets are falling, although it doesn’t work as well when prices are rising, according to some experts.