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It seems everywhere you look someone is talking about a recession, but does a recession mean we are all financially doomed?

Put simply, a recession “occurs when there is a period of reduced output and a significant increase in the unemployment rate.”1 Recessions are part of normal economic cycles, and after the anomaly that has been 2020 – this recession should come as no surprise.

Australians have been lucky up until now considering this is our first recession in 28 years after experiencing one recession per decade in the 70s, 80s and 90s. Think about it this way – a majority of Generation Y were yet to experience a recession up until now.

Nevertheless, people are wondering what to do (if anything) with their investments. Invest in cash to protect your money? Or go ‘all-in’ on a market downturn, feeling confident there won’t be a severe recession. One thing is for sure, gambling your nest egg based on fear or gut instinct is not a smart move to make right now.

Is there a better way? Yes. It’s called having a plan. Businesses have them to manage their cash flow, inventory, expenses, etc, so that they can successfully navigate the constantly changing economic environment. Just as businesses have a plan, individuals need a plan too. A plan keeps you from making quick and all-too-often misguided emotional decisions that may derail your retirement.

This brings us back to our original question: can I or should I retire during the recession?

If you already have a Financial Adviser, your Financial Plan should have directed your funds to be invested inline with your goals and tolerance to risk, i.e. you should have a well-diversified portfolio that can tolerate fluctuations in the markets in preparation for your retirement.

Alternatively, if you don’t have a Financial Adviser, seeking assistance now and establishing a Financial Plan can help you to develop a well-diversified investment portfolio, maximise your retirement income, determine if you are entitled to Centrelink concessions, and much more.

If you don’t want your retirement to be a victim of this recession, and are ready to enjoy the retirement you deserve, book a complimentary initial appointment with one of our Retirement Advice Specialists. We have offices located in Erina (CCFPG), The Junction (NFPG) and Sydney CBD (SWA).




1: Australia, scheme=AGLSTERMS A. corporateName=Reserve B. of and Australia, scheme=AGLSTERMS A. corporateName=Reserve B. of (n.d.). Recession | Explainer | Education. [online] Reserve Bank of Australia. Available at:



The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group and Sydney Wealth Advisers are subsidiaries of Coastal Advice Group which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.

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