Steps to take to reduce the impact of Iranian war on your super savings
When you search Wikipedia: “How many wars Iran has been part of in its history”, you would need to devote days to read the list of hundreds and hundreds of wars that somehow included Iran.
But only since 1979 when the country became the Islamic Republic of Iran until 2026, there were 28 wars or military conflicts with Iran. That appears that every year and a half there is a conflict. But if you take into consideration that some of those conflicts lasted longer that a year, then it is easy to conclude that Iran has some kind of a war every year.
The reason why I list this part of Iranian history is to indicate that a war in this country is not a new event, and although we always say that the past is no indication of the future, however the history often rhymes.
This post is not to discuss any political issues or I will not be suggesting the outcomes of the war or how long it is going to last. I will leave it to the press and TV, but I will try to tackle the question: “What are you supposed to do with our superannuation savings or retirement pension accounts in the view of the war continuing?”
The steps you could take to reduce the impact of Iranian war on your finances.
1. Boost your emergency fund
Such as cash in hand and money in your daily bank account or short-term higher interest accounts. Especially in retirement, where there is no longer an income earned, it is a great rule to keep in cash at least 6 months’ worth of your expenses. I would usually ask clients to keep anywhere between $30,000 and $50,000 in bank in case of emergency. If possible, keep portion of this money in high-interest accounts, so at least that portion of your savings can still keep up with inflation
2. Do not panic and do not sell any investments
Do not act impulsively, markets are always volatile to some degree, but now this is underlined by the news. History shows that markets rebound, sometimes very fast, sometimes it takes time, but if you sell your investments, you will lock in your losses with no ability for recovery. This is the worse decision you could make..
3. Savings in super
If you are still few years before retirement and your savings are in the accumulation phase, chances are your account will recover and will continue growing. Therefore do not panic, just stay on your course and keep your asset allocation as per your chosen risk profile.
4. Pension phase
If your savings are already in a pension phase, then adjust your investment portfolio in the way that your pension payments are not provided to you by selling assets, but rather from your defensive assets, such as cash and fixed interest.
5. Review your investment portfolio
Make correct adjustments to ensure appropriate diversification between different types of assets, investments need to be well diversified geographically, with correct division between growth and defensive assets.
6. If you are retired
Check if you are eligible for any government support, especially if your Age Pension has been maximised and you are really receiving the highest payments that could be available to you in your financial position. As I always say, every dollar increase of Age Pension is your personal dollar saved And it adds up over the years, where you can ensure your personal savings will continue supporting you for a long time.
7. If you have any debts
Make arrangements and establish strategies to have those repaid as soon as possible. Debts in retirement when you no longer have any earned income should not exists. And, depending on the type of debt you have, some could be detrimental to your eligibility for Age Pension.
If you would like to receive the actual retirement planning advice, to find out the strategy to maximise your retirement benefits, government benefits, reduce your personal and estate taxed and how to improve the value of your estate for your chosen beneficiaries, feel free to make a booking to chat to a financial planner from About Retirement. On each page of our website there is a box: BOOK A MEETING where you can choose day and time to discuss your plans and your retirement goals.
By: Katherine Isbrandt CFP®
Money Strategist & Retirement Planner
Principal of About Retirement
