22 April 2020
Remember that super is long term
We understand many are concerned about the state of the economy including its effect on your super. We encourage you, however, to 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 our members whose retirement is in the distant future the answer to what you should do with your super 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 October 1987 crash, the bursting of the tech bubble in 2001, 2008 global Financial crisis and the September 11 terrorist attacks.
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.
If you are, however, worried about the market conditions you can log in to Members Online or the Vision Super app to check your account to see your investment options and also have a look at our PDS and How we invest your money guide to find out more about your investment options. Please think carefully before making any decisions and if you would like to speak with us you can call 1300 300 820, or you can book a financial planning appointment online.
Approaching retirement or already retired
Super is usually a long-term investment, even if you are close to retirement or already retired. We understand if you are 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 with my super is: before you make any changes to your investment strategy, please get 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 and needs.
If you do decide to switch to a more conservative option, please be aware:
- Moving to a more conservative strategy now, after markets have declined, will lock in losses
- And a more conservative strategy by its nature delivers lower long-term returns and is not likely to capture the full benefit when share markets eventually (and inevitably) recover.
To book an appointment with a Vision Super financial planner, complete the online form or call the Contact Centre on 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.
But no matter how near or far retirement is for you before you make any changes with your super investments, you should consider your personal objectives, situation and needs. Also read through the relevant Vision Super Product Disclosure Statement(s).
General advice warning
This article includes general information and does not contain any personal advice. It is provided for general information only, to help you understand the investment switching and the current market volatility. 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 personal circumstances before acting on it and, if necessary, you should seek professional financial advice.