"We’re seeing very low investment returns right across the markets, and people really have to reassess their view of what they see as a prudent level of performance in investor markets," said Mr Michell.

"Investors need to focus on income and look at those investments and asset allocations that are going to provide a stream of income that you can utilise for performance or to meet lifestyle needs during retirement."

In the current markets, Mr Michell said there is a lot of incentive to generate higher returns by taking on more risk, and that a lot of investors don’t understand the risks they are taking on.

He warned that simply leaving the bulk of the fund in cash could also be damaging to the portfolio in the current environment.

He said that looking at the interest rate market, everything suggests that rates will continue to remain low.

"We certainly have a view that even in a low interest rate environment you still need to put your money to work, there is a huge opportunity cost of not and sitting in cash, and cash has continued to underperform as rates have fallen," he added.

"It’s a low rate environment, if you can lock in a decent return, with some certainty focus on income, that’s a good place to be for the next couple of years."