As you move towards retirement, it generally makes sense to become more conservative with your superannuation investments. This is because, as you approach retirement age, you have less time to recover from any losses or market downturns.

When you're younger, you can afford to take more risks with your superannuation investments, as you have a longer time horizon to ride out any fluctuations in the market. However, as you get closer to retirement, it's important to preserve the capital you've accumulated and protect it from market downturns.

One common strategy is to shift your superannuation investments towards more conservative options, such as bonds or cash, as you approach retirement. This can help reduce the volatility of your portfolio and protect it from market downturns. However, you should still aim to generate enough returns to provide for your retirement needs, so you may need to strike a balance between risk and return.

It's important to remember that everyone's situation is different, and there is no one-size-fits-all answer to this question. Your risk tolerance, retirement goals, and financial situation should all be taken into account when determining the best approach to managing your superannuation as you move towards retirement. It may be helpful to consult with a financial advisor who can help you develop a personalised retirement plan that takes all of these factors into account.

Rick Maggi