We understand many are concerned about the state of the economy including its effect on your super. However, please remember that super is a long-term investment and while we have recently seen negative returns they are often followed by years of strong returns and performance.
If retirement is far away
For those whose retirement isn’t in the distant future the answer is: consider doing nothing. Market downturns, whatever their catalyst, is the norm because it is the nature of investment markets to go up and down. Like the bursting of the tech bubble in 2001, or the 2008 global Financial crisis.
If you have 15, 20 years or more until retirement, this downturn is one of many you will likely experience during your working life, and one of the benefits of riding out the short-term market turmoil is higher long-term returns. It also provides an opportunity for Vision Super’s investment team to acquire assets at lower prices on behalf of members.
Approaching retirement or already retired
Super is usually a long-term investment, even if you are close to retirement or already retired. So, we understand if you’re seeing your balance decrease you may want to switch to a more conservative option but, for your balance to last as long as possible, our answer to what should I do is: before you make any changes to your investment strategy please seek professional financial advice.
The best way to ensure that you are in the right investment option is to discuss your risk profile with a financial adviser. They will be able to recommend the option that’s best suited to your circumstances. To book an appointment with a Vision Super financial planner, complete the online form or call 1300 300 820 to arrange an appointment. Advice on certain single superannuation issues like your investment option can usually be provided at no cost to you.
You can also refer to the online calculator to model how your super will grow over time. Within the calculator, you can adjust factors like age, income, and investment mix, to see the impact each may have on your super.
General advice warning
This article includes general information only, to help you understand investment switching and the current market volatility. It does not contain any personal advice. The information does not take into account your personal objectives, financial situation or needs. You should consider whether it is appropriate for you and your circumstances before acting on it and, if necessary, you should seek professional financial advice.