A self-funded couple retires with $1.5 million in savings. Excited about their future, they move their self-managed superannuation fund (SMSF) into pension phase, invested in blue-chip shares for yield. Within months, financial markets tumble. By year’s end, the couple’s retirement nest egg has fallen by a third to $1 million.

Dividend cuts follow and, unable to maintain their lifestyle, the couple draws down their capital at depressed prices. A few years later they have $750,000. Their financial adviser says their investments will recover. It never does – to get back to the original $1.5 million, they need a 100 per cent return. Their savings run out a decade earlier than expected, denting retirement dreams.