You would have heard in the news over the past week about the recent activity in the Australian and global share markets.
It’s often said markets take the escalator up and the elevator down, and the recent falls are just the latest example. The share market generally has minor ups and downs each year, but every now and then it has a significant plunge, before gradually climbing up that escalator again.
While many reports may seem doom and gloom, reacting and making rash decisions without careful consideration could disadvantage your retirement savings. If you hop off the elevator at the ground floor you may be locking in your losses.
What does this mean for your super?
Most superannuation funds have an allocation to Australian and global shares and are impacted by this volatility. For Club Super, most of our members are invested in diversified options, such as the Club MySuper option, in which shares only form part of a range of assets which make up the returns for this option. Our investments are spread across a range of asset classes of both a growth and defensive nature.
Club Super’s diversified investment portfolios are designed to help minimise the impacts of market volatility. However, the portfolios are not immune to the impacts of market volatility and we will likely see the impacts of this volatility in future crediting rates.
What you can do
- Focus on your chosen long term risk profile and underlying investment options rather than reacting to short term market fluctuations; and
- Give careful consideration before switching your investment options now as it may result in a reduction of the value of your superannuation. It will be very difficult to correctly time a switch back to your original investment options in order to recover any lost value once investment markets stabilise again.
We’re here to help
If you would like to review your chosen level of risk, YourSuperFuture is an easy to use online advice tool which can evaluate your risk profile. You can access this tool at no extra cost by logging into Member Online.
If you are concerned about your investments in Club Super and would like advice, Club Super offers access to personal financial advice through Club Super Financial Planning. Call us on 1300 369 330 to obtain over the phone advice, or to organise an appointment in person. Fees may be charged for the provision of personal advice, but where the advice relates to your superannuation, these costs may be covered by your membership with Club Super or deducted from your superannuation account.
If you have any questions regarding your super, please call us on 1300 369 330 or email firstname.lastname@example.org
Past performance is not necessarily indicative of future performance.
YourSuperFuture and Club Super Financial Planning advice is provided by My Super Future Pty Ltd (ABN 38 122 977 888) Australian Financial Services Licensee (AFSL no. 411440). My Super Future Pty Ltd is authorised to provide personal financial advice. The Trustee is not responsible for, and does not accept liability for the products or services or actions of My Super Future Pty Ltd. You should use your own judgement before taking up any product or service offered by My Super Future Pty Ltd.