Investors nearing retirement have had to contend with a rocky global environment in 2025, as sharp swings in United States import tariffs have sparked concern across Australian markets.

The latest escalation in this trade volatility came on 1 August 2025, when President Trump signed an executive order imposing new tariffs on imports from 92 countries, with rates ranging from 10% to as high as 41% depending on trade relationships and deficits.

Markets around the globe, including the ASX, slumped in immediate response as investors feared fallout from higher consumer costs and disrupted supply chains.

For those in the final stretch before retirement, these developments can feel unsettling. But with the right financial planning advice, your long-term goals don’t have to be derailed.

Why tariffs matter for your retirement strategy

Tariffs are essentially taxes on imports. While designed to protect domestic industries, they often spark retaliation and increase uncertainty in global supply chains. For investors, this can lead to market instability, particularly in sectors that rely on international trade.

Most Australians have superannuation investments that include both domestic and international shares. This makes super balances highly sensitive to global economic shifts, including tariff-related disruptions. If markets fall at the wrong time, it can directly affect the value of your retirement savings.

Beyond super, many people working with a financial planner also hold direct shares, property, managed funds or private investment structures. All of these can be affected by market volatility. That’s why retirement planning should take a whole-of-portfolio view, balancing risk and return across every asset class.

 A trusted Gold Coast financial adviser can help you assess how exposed your total investment strategy is, and whether any adjustments are needed to reduce risk without compromising future growth.

If you’re less than seven years from retirement, timing matters

Many Australians entering the pre-retirement phase are between five and seven years from finishing full-time work. This period is critical; you’re likely earning your highest income, and every financial decision can have a big impact on your lifestyle in retirement.

Sharp market downturns during this window can undermine the value of your retirement savings, particularly if your investments aren’t well diversified across super and other asset classes. That’s why this stage of life calls for smart retirement planning – an integrated strategy that considers tax outcomes, income timing, capital preservation and legacy planning in the lead-up to retirement.

Four ways to protect your retirement plan from market shocks

1. Balance growth with capital protection

A diversified portfolio means your investments are spread across different asset classes, industries and regions. It helps reduce the risk that one event, such as a tariff shock, will harm your entire retirement plan.

Diversification is one of the most important tools available to help manage investment risk. By diversifying your portfolio across a range of different investment classes, you can enhance your ability to earn good long-term returns and reduce your exposure to market highs and lows. All this helps to reduce the level of risk in your portfolio.

An experienced Gold Coast financial adviser who specialises in retirement planning can tailor your portfolio to ensure it reflects your risk tolerance and income needs as you approach retirement.

2. Rebalance regularly and review your asset allocation

As markets move, your portfolio can drift from its intended allocation. This may expose you to more risk than you’re comfortable with. Regular rebalancing involves periodically reviewing your asset mix and making the necessary adjustments to ensure it remains aligned with your goals and risk tolerance.

Without regular rebalancing, you could end up taking on more risk than planned or missing out on opportunities to capture value. It’s particularly important in the lead-up to retirement, when preserving capital becomes more critical than chasing aggressive growth.

A comprehensive financial planning strategy often includes scheduled portfolio reviews to ensure your asset allocation aligns with your evolving needs, risk tolerance and market conditions. This process also gives your financial planner the opportunity to factor in changes to your income, expenses or retirement timeline.

As part of a tailored retirement plan, your adviser may also implement a ‘glide path’ strategy. This approach gradually shifts your portfolio towards more conservative investments, such as fixed interest and cash, as you approach retirement. This helps to protect your nest egg from late-stage volatility while ensuring sufficient growth to fund a long retirement.

Rebalancing isn’t a set-and-forget activity. It should be part of an ongoing financial planning process, tailored to your time horizon, cash flow needs and market conditions.

3. Build liquidity into your plan

Sudden market dips, like those caused by global tariff changes, can be risky if you’re forced to sell growth assets in a downturn. Selling shares or property during a market slump can lock in losses and reduce the longevity of your retirement savings.

A well-structured retirement planning strategy includes liquidity, ready access to cash or cash-like assets, which allows you to cover living expenses without disturbing your long-term growth investments.

Many financial planners recommend building a three to five-year liquidity window. This buffer can cover income needs during the early years of retirement, helping to manage what’s known as ‘sequencing risk’, the risk that poor market returns early in retirement will damage your portfolio more than if they occurred later.

Liquidity also provides flexibility during periods of market opportunity or stress. With sufficient liquidity, you’re better positioned to ride out short-term volatility and make smarter long-term decisions.

4. Explore retirement income products

Today’s retirees have access to a broader suite of income products than ever before, each with advantages and disadvantages depending on your goals, risk tolerance and retirement timeline. From traditional account-based pensions to annuities, term allocated pensions, and the newer pooled lifetime income products offered by super funds, the choices are expanding.

A financial planner can assess your full financial picture and recommend an integrated retirement income strategy that draws from super, personal investments and other entitlements, helping to secure a reliable income stream that adapts as your needs evolve.

Why strategic advice beats knee-jerk reactions

Tariffs don’t exist in isolation. They interact with inflation, interest rates and political responses. So rather than reacting emotionally, the right approach is strategic. A financial planner will review your portfolio for overexposure, identify areas for diversification and stress test your plan against worst-case scenarios.

Sometimes, volatility can even create opportunities if you have a clear plan and the guidance of a trusted adviser.

Partner with a financial planner who understands your retirement goals

At RFS Advice, we help professionals and pre-retirees on the Gold Coast navigate retirement planning with confidence. Whether you’re looking to optimise super contributions, manage investment risk or design a tax-effective drawdown strategy, we’re here to help.

Our financial planning services include:

• Reviewing your portfolio for resilience against market downturns
• Aligning your asset allocation with your risk profile
• Maximising your retirement income from super and non-super assets
• Integrating estate planning and legacy strategies

Focus on what you can control

No one can predict the next market shock. But with a robust financial planning strategy and the right advice, you can take control of how you respond.

If you’re looking for a financial planner who understands the needs for retirement, speak to a trusted Gold Coast financial adviser at RFS Advice today.

We’re here to help you plan with confidence, even when markets are unpredictable.  Schedule a call today.

General advice warning:

The information and any advice provided in this article has been prepared without taking into account your objectives, financial situation or needs.  Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things.