The Lifetime Retirement Income Fund is liquid (90%) and can accessed for emergencies, this is however a last resort, as the purpose of the fund is to provide an income for life with any withdrawals reducing the amount of retirement income paid.
Outside of your retirement income solution, if you are also planning an investment portfolio, it is important to get an idea of just how much when planning an investment portfolio, it is important to get an idea of just how much cash you might need to get your hands on, either in the short term or at short notice. This includes both planned spending and provision for unplanned expenditures such as unexpected health costs or home maintenance costs.
Investments that are highly liquid and stable in value come at a cost, as the investment returns are usually low. There is a balance to be had between liquidity and return. The trick is to set aside just enough money in liquid, stable investments to cover short-term spending and emergency needs, and to invest the rest for the long-term in assets that have a higher return but are either less liquid or more volatile.
Investing for liquidity is different from investing for return. The goals of investing for liquidity are to ensure you have access to money when you need it and that there is little risk of loss. The investment return is secondary to these goals.