Has your superannuation suffered over the past month? Here's what finance experts have to say
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Navigating the ebbs and flows of the global economy can be a daunting task for anyone.
For seniors, particularly those who have recently retired or have plans on retiring soon, the stakes are even higher.
The stability of superannuation funds is paramount, as they represent the culmination of decades of hard work and savings.
Recent global events have shown how vulnerable superannuation nest eggs can be to international policy changes.
The new tariffs imposed by United States President Donald Trump have sent shockwaves through the global markets.
The ripple effects have been felt all the way Down Under, impacting the superannuation balances of Australians.
According to superannuation consultant firm Chant West, the median super balanced option fell by 1.9 per cent in March.
It could also fall further to two per cent this month.
This option typically has between 61 to 80 per cent of its funds invested in shares, making it susceptible to market fluctuations.
An average Aussie between ages 65 and 69 has a superannuation balance of $428,056, as reported by the Association of Superannuation Funds of Australia (ASFA).
However, this downturn could mean a reduction of over $13,355 from their superannuation balance in less than two months.
A single person aiming for a 'medium' retirement standard would need around $43,000 per year, meaning this loss could represent nearly four months of living expenses.
The situation could get more dire for Australians with super funds geared towards growth—96 to 100 per cent of the money has been invested in shares.
These accounts saw a 3.3 per cent decrease in March, equating to a $14,125 drop.
High-growth accounts, with 81 to 95 per cent invested in shares, experienced a 2.5 per cent fall.
Despite the recent volatility, the median super fund was still up 5.5 per cent over the nine months of the 2024-25 financial year.
All growth and high growth accounts went up to 6.9 per cent and six per cent, respectively.
These figures suggested that while the short-term outlook may appear bleak, the long-term trend could still be positive.
Earlier this month, comedian Matt Hey shared that he lost $40,000 from his superannuation fund after the United States tariff announcement.
Mano Mohankumar, Chant West's Senior Investment Research Manager, urged retirees and those nearing retirement not to panic.
He acknowledged that while it's distressing to see account balances decrease, most members should remain patient, even those who are older.
He cautioned against the knee-jerk reaction of shifting to lower-risk options or cashing out, as this could mean missing out on market recovery.
It's crucial for everyone, especially seniors, to stay informed and to seek professional financial advice tailored to specific circumstances and needs.
It's also a good reminder of the importance of diversification in investments.
Have you noticed a change in your superannuation balance recently? How are you managing your superannuation strategy in these uncertain times? Share your experiences and strategies in the comments below, and let's support each other through these challenging financial landscapes.
For seniors, particularly those who have recently retired or have plans on retiring soon, the stakes are even higher.
The stability of superannuation funds is paramount, as they represent the culmination of decades of hard work and savings.
Recent global events have shown how vulnerable superannuation nest eggs can be to international policy changes.
The new tariffs imposed by United States President Donald Trump have sent shockwaves through the global markets.
The ripple effects have been felt all the way Down Under, impacting the superannuation balances of Australians.
Aussies may consult with a financial expert for their plans regarding superannuation. Image Credit: Pexels/Kampus Production
According to superannuation consultant firm Chant West, the median super balanced option fell by 1.9 per cent in March.
It could also fall further to two per cent this month.
This option typically has between 61 to 80 per cent of its funds invested in shares, making it susceptible to market fluctuations.
An average Aussie between ages 65 and 69 has a superannuation balance of $428,056, as reported by the Association of Superannuation Funds of Australia (ASFA).
However, this downturn could mean a reduction of over $13,355 from their superannuation balance in less than two months.
A single person aiming for a 'medium' retirement standard would need around $43,000 per year, meaning this loss could represent nearly four months of living expenses.
The situation could get more dire for Australians with super funds geared towards growth—96 to 100 per cent of the money has been invested in shares.
These accounts saw a 3.3 per cent decrease in March, equating to a $14,125 drop.
High-growth accounts, with 81 to 95 per cent invested in shares, experienced a 2.5 per cent fall.
Despite the recent volatility, the median super fund was still up 5.5 per cent over the nine months of the 2024-25 financial year.
All growth and high growth accounts went up to 6.9 per cent and six per cent, respectively.
These figures suggested that while the short-term outlook may appear bleak, the long-term trend could still be positive.
Earlier this month, comedian Matt Hey shared that he lost $40,000 from his superannuation fund after the United States tariff announcement.
Mano Mohankumar, Chant West's Senior Investment Research Manager, urged retirees and those nearing retirement not to panic.
He acknowledged that while it's distressing to see account balances decrease, most members should remain patient, even those who are older.
He cautioned against the knee-jerk reaction of shifting to lower-risk options or cashing out, as this could mean missing out on market recovery.
It's crucial for everyone, especially seniors, to stay informed and to seek professional financial advice tailored to specific circumstances and needs.
It's also a good reminder of the importance of diversification in investments.
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