When there are big things happening in the world, like conflicts, political instability, significant financial events or natural disasters, financial markets can react negatively or bounce up and down. When markets go down it can be disconcerting to see the balance of your super account go down too.
While market ups and downs are a normal part of investing, when investors get spooked and decide to move their money to less volatile investments, they can miss out on returns when markets go back up.
The Super Members Council did some analysis of what happens when members switch to cash because they get worried about markets dropping. It showed that in the worst-case scenario, for someone with $100,000 in super, switching to cash at the COVID-19 trough could have left them around $50,000 worse off over five years; while during the 2025 tariff episode, someone switching to cash could be around $7,000 worse off over just one year.[1]
It’s also important to recognise that every situation is different. Factors like your age, how long you have to invest your money, and your personal financial goals all influence the way your super is invested and how market movements may affect you.
A longer investment horizon can generally afford to ride out short-term volatility, while those with a short investment horizon may be more concerned about the ups and downs.
A helpful reminder is that, for most of us, super is a long-term investment, and there are steps you can take to help you stay comfortable with the market ups and downs.
Staying focused on your long-term plan, rather than short-term market movements, can help you make more confident and informed decisions during periods of volatility.
Check if you’re on track for retirement
Given the recent market volatility, you might be taking the opportunity to review your super and ensure that your retirement savings are on track.
We’re committed to helping our members stay financially confident during times of uncertainty, and our team are here to help you on your retirement journey.
If you’re a Vision Super member, you can get a retirement health check once a year at no extra cost. A retirement health check won’t cost you anything extra and lets you speak with one of team and get a detailed projection to help you determine your retirement readiness. A retirement health check can consider:
- Your Vision Super account
- If you have a partner, their super accounts
- Non-super investments (like property and shares)
Book a retirement health check >>>
Get the right advice
Everyone’s financial journey is unique, so there may be times when you feel you need more personalised advice tailored to your specific circumstances. If you’re thinking about making any changes to how your super is invested, we recommend that you get financial advice.
If you’re a Vision Super member, simple advice related to your account is usually available at no extra cost (because it is included in the administration fee you pay).
Some personal advice will involve a cost because it is more comprehensive or it doesn’t relate to Vision Super, but you’ll always be told upfront what the fee will be and can choose whether you want to go ahead.
Attend a seminar
If you’re not ready to speak to a financial adviser or that doesn’t sound like the right option for you, but you still want some guidance to help you feel confident in your financial decisions, you might want to check out our events calendar.
We regularly run retirement seminars in both metropolitan and regional locations to discuss superannuation contributions, investment options and retirement income strategies.
And if you can’t join us face to face, you can register for one of our upcoming webinars and learn more about how to make the most of your super from the comfort of your own home.
Members are always to welcome to call us on 1300 300 820, Monday to Friday 8:30am to 5pm, or email memberservices@visionsuper.com.au, if they have any questions about their super.
Any advice in this article is general only and has been issued by Vision Super Pty Ltd (ABN 50 082 924 561) (AFSL 225054) as the Trustee of the Local Authorities Superannuation Fund (ABN: 24 496 637 884) (‘Vision Super’). The advice does not take into account your personal objectives, financial situations or needs. Before acting on the advice, you should consider whether it is appropriate for you, having regard to your own circumstances, and obtain the appropriate Product Disclosure Statements (PDS) / Member Guides and Target Market Determination (TMD) available at www.visionsuper.com.au. Vision Super Financial Planners are employees of the Trustee (or a related entity) that are authorised to provide financial advice as representatives of Industry Fund Services Limited (IFSL) ABN 54 007 016 195 AFSL 232 514. Any financial advice provided by a Vision Super Financial Planner is issued on behalf of IFSL, not their employer.
[1] https://smcaustralia.com/media/why-switching-your-super-into-cash-in-a-market-downturn-can-make-you-poorer-in-the-long-run/
