It can be worrying when investment markets fall, especially if you see your super balance go down. But ups and downs are a normal part of super. Super is designed to grow over the long term, so it’s usually better to think long-term, rather than make decisions based on what’s happening right now.
If your retirement is still some way off, your super has time to recover from any short-term falls. Research from MoneySmart (an Australian Government service) highlights that investment performance should generally be assessed over five to ten years, and decisions should not be based on a single year of returns or short-term ups and downs.
When markets fall, some people think about moving their super into a lower-risk option. That may feel safer in the short term, but switching after markets have already fallen can lock in losses and may mean your super balance increases more slowly if markets recover. Market falls can also have an unexpected positive side. If you keep adding to your super while prices are lower, your contributions may buy more investment units. This may help your balance grow when markets recover.
The right choice depends on your age, goals, needs and how comfortable you are with risk. It should not be based only on headlines or short-term market movements.
The key is to stay focused on your goals rather than simply reacting. While growth options may experience larger short-term ups and downs, they also typically provide greater potential to grow over time1. For many young Australians, time is one of the biggest advantages when it comes to building retirement savings.
View our investment performance.
That doesn’t mean you should ignore your super. It’s important to periodically review:
Contributions
Your insurance needs
Beneficiaries (who will get your super if you die)
Your retirement goals and timeframes
And of course, your investment options
Everyone’s financial journey is unique, so there may be times when you feel you need more personalised advice tailored to your specific circumstances. A financial planner can assess your situation, explain your options, and help you avoid emotional decisions that could impact your long-term retirement savings.
As a member, limited advice related to your Vision Super account is usually available at no extra cost (because it’s included in the administration fee you pay). This would cover which investment options in Vision Super are best suited to you. Some personal advice will involve a cost if it’s more comprehensive or relates to financial assets outside of Vision Super, but you’ll always be told upfront what the fee will be so you can choose whether you want to go ahead. You can book an appointment online.
Alternatively, you can always speak to our friendly Member Services team on 1300 300 820, Monday to Friday 8:30am to 5pm, or email memberservices@visionsuper.com.au
1 https://moneysmart.gov.au/how-to-invest/develop-an-investing-plan#understand-investment-risks
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 Vision Super Product Disclosure Statements (PDS) and Target Market Determinations (TMD) available at www.visionsuper.com.au.
Past performance is not a reliable indicator of future performance.