Published: 22 Jun 2022
Market volatility could mean that annual superannuation returns are lower than recent years, but Industry SuperFunds are reminding members that making rash decisions now could crystalise losses and may leave them poorer in retirement.
In a bid to stem losses many members switched their super to cash only options at the bottom of the COVID-19 pandemic-induced downturn, but Industry Super Australia analysis shows this costly change meant many missed the market rebound and potentially locked in losses of up to $20,000.
A member with $50,000 super who switched to cash only, at the bottom of COVID-19 market drop in March 2020, would have already locked in losses of about $20,0001 than if they stayed with an industry funds’ balanced option.
*The above material, whilst correct at the time of publication may include references or statements which are no longer current.