28 August 2023
There’s a lot going on: concerns about coronavirus, market volatility, "panic buying" and US politics. What kind of impact could this have on your super ?
Market volatility
It’s normal for financial markets to move in cycles and negative returns happen from time to time. Superannuation is a long-term investment and generally speaking, what occurs in today’s market is not likely to have a significant impact on your super investments over the longer term (i.e. more than six years).
Keep in mind that financial markets have performed very well in recent years. Pull backs are inevitable and that is what we are seeing now.
The amount you have in ‘growth’ assets (shares and property) and ‘income’ assets (fixed interest and cash) will determine how much volatility you experience.
The purpose of superannuation is to accumulate enough wealth for a comfortable retirement. A long-term focus is essential to staying on track to achieving your retirement goals.
How does volatility affect different asset classes?
Generally, cash and fixed interest are less volatile assets, and so are more stable in the short-term but you may not receive higher returns in the long-term.
Property and shares are more volatile so may experience greater volatility in the short-term but generally provide higher returns in the long-term
Who can I talk to ?
We understand that making a decision about super can be complex – particularly during complex times like these. For general information, we encourage you to call the Child Care Super helpline on 1800 060 215. Please note though that our Member Services team are not authorised to provide you with personal financial advice and cannot consider your individual circumstances.
This news item contains general information only. It does not take into account your objectives, financial situation or needs. Before acting on any information you should consider its appropriateness having regard to your objectives, financial situation and needs. Prior to making a decision in relation to any financial product you should consider the relevant Product Disclosure Statement (PDS). You can get a copy of the Child Care Super PDS by calling 1800 060 215 Equity Trustees Superannuation Limited ABN 50 055 641 757 AFS Licence No. 229757 RSE Licence No. L0001458 as Trustee of the Guild Retirement Fund ABN 22 599 554 834 (which includes GuildSuper and Child Care Super)