Mr Birtles said retirees need to start looking beyond any single-asset class to meet their retirement income needs, arguing a multi-asset approach to retiree income delivers a more consistent and predictable outcome.

“Retirees rarely take into account the income risk inherent in investing in a single-asset class,” said Mr Birtles.

“For example, many retirees considered term deposits and annuities a reliable option for protecting their capital, but these products have suffered significant reduction in income over the past seven years that dwarf any potential loss from investing in equities.”

He said retirees should instead balance their asset allocation between equity income, real assets and fixed income to ensure adequate capital preservation, income generation and inflation protection.

Mr Birtles said fixed income provides low capital volatility, real assets such as AREITS and infrastructure offer income protection, while equities deliver significant upside potential for income growth.

“By using dynamic asset allocation across these asset classes, retirees can receive income that preserves their capital by providing long-term growth in income and high yields relative to more traditional retiree asset classes such as term deposit,” he said.