A Retiree’s Guide - Financial Markets 2025 - Why Managed Funds Shine

Wednesday, June 25, 2025

The first half of 2025 has been a bumpy ride for markets worldwide. For retirees, this period highlights why managed funds can be such a smart choice for your savings. Here’s what happened—and why managed funds can help you stay calm and confident.

What Happened in the Markets This Year?

A Rocky Start

Early in the year, global markets got nervous. New trade rules and tariffs between big countries like the US and China made investors uncertain. Stock prices dropped, and many people moved their money into safer places like government bonds and gold. Even oil prices fell.

A Strong Comeback

By May, things started looking up. Countries talked things out, and investors felt better. Stock markets rebounded, especially in the US and Asia. Australia’s share market (the ASX) also bounced back, with tech and energy sectors leading the way.

How Did Different Investments Perform?

• Stocks: Went up and down, but ended up stronger after a tough start.
• Bonds: Had a rough patch as interest rates rose, but then settled down.
• Commodities: Gold and oil dropped in price, which affected those who invested directly in them.

What Did Central Banks Do?

• US Federal Reserve: They’re thinking about lowering interest rates, which can help markets.
• Reserve Bank of Australia (RBA): They cut rates in May, which is good for borrowers but means lower returns on savings accounts. (Refer to last Month’s Blog - What Falling Interest Rates in Australia Mean for the Economy & Investors )
• Bank of England: They also cut rates to help their economy.

How Is Australia Doing?

Australia’s economy has stayed strong:

• Government: The Labor Party won the election, so things are stable.
• Prices and Wages: Inflation is under control, and wages are rising in important areas like aged care and childcare.
• Jobs: More people are working, and unemployment is low.
• Businesses: Conditions are a bit tougher, but confidence is up.

Why Managed Funds Are Great for Retirees

Investing in managed funds offers several key benefits, especially during uncertain times:

1. Diversification Made Easy
   • Managed funds spread your money across many different investments (like shares, bonds, and property).
   • This means if one part of the market drops, your whole portfolio isn’t at risk.
2. Expert Management
   • Professional fund managers make decisions for you, based on research and experience.
   • They adjust your investments as markets change, helping you stay on track.
3. Less Stress
   • You don’t have to worry about picking individual stocks or timing the market.
   • Managed funds handle the ups and downs, so you can focus on enjoying your retirement.
4. Access to Global Markets
   • Many managed funds invest in overseas markets, giving you opportunities you might not have on your own.
   • This helps protect your savings if Australia’s market has a tough time.
5. Regular Income Options
   • You can receive regular income payments from your investments whether they be in Superannuation, Allocated Pension, or a regular Investment portfolio. This is perfect for retirees needing steady cash flow.

Looking Ahead: What Should Retirees Do?

The first half of 2025 showed that markets can be unpredictable. But by investing in managed funds, you can enjoy peace of mind, regular income, and the benefits of expert management and diversification.

Your financial adviser can assess your unique financial circumstances and make recommendations as to the best choices of managed funds to be invested in to care for your retirement nest egg and for your retirement income requirements.

In short:
Managed funds can make it easier to ride out market ups and downs, keep your savings growing, and enjoy a more relaxed retirement.  

Maher Digby Securities specialise in retirement planning and retirement investing and offer a complimentary initial consultation. You can contact them on Ph: 07 5441 1266.
You can read what clients say about Maher Digby services here:  What Clients Have To Say   

For more Information contact Mark Digby at Maher Digby Securities Pty Ltd - Financial Advisers – AFSL No. 230559. This document was prepared without taking into account any person’s particular objectives, financial situation or needs. It is not guaranteed as accurate or complete and should not be relied upon as such.  Maher Digby Securities does not accept any responsibility for the opinions, comments, forward looking statements, and analysis contained in this document, all of which are intended to be of a general nature. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend consulting a financial advisor.