During periods of market volatility, it’s important to understand these impacts, the risks of switching your investments and know how we manage our members’ super savings so that you can feel more confident about your future.
- When you see ups and downs in your super savings, it’s only natural to feel concerned about your money or whether to change your investment strategy.
- Over time, your super balance will go up and down depending on how your investments perform. Market volatility refers to sharp and unpredictable price movements. It's a normal part of the market cycle which is what can cause fluctuations in your super balance. That’s why it’s important to remember that super is a long-term investment.
- These market ups and downs can have a far bigger impact when you’re just about to retire.
- Short-term ups and downs are inevitable, but our experienced team invests for the long term, to help you retire with more.
- If you’re unsure about what to do about market volatility, speak with one of our investment experts1, at no extra cost.
1. Financial planning services are provided by our financial planning business, Aware Financial Services Australia Limited, ABN 86 003 742 756 AFSL No. 238430.
How we help safeguard your super
We have a large and experienced team of over 100 investment experts managing the risks and opportunities in the market. Our focus is on delivering strong long-term returns to help our members retire with more. We also know that short-term ups and downs are inevitable, so we aim to make our portfolio robust to short-term impacts and positioned to take up opportunities.
Super is likely the longest investment you will have. That’s why our experienced investment team invests for the long term, to help you retire with more.
If you’d like expert advice to make more of your super and retirement, our financial planners1 can work with you to help you achieve your goals, at no extra cost.
1. Financial planning services are provided by our financial planning business, Aware Financial Services Australia Limited, ABN 86 003 742 756 AFSL No. 238430.
Markets swing in ups and downs
It’s the nature of investments that they will move up and down in value over time. And in the long term, everyone investing in the market should expect to experience both losses and gains. While periods when markets are falling can make you feel uncomfortable, experience shows us that markets generally recover. This is a normal part of investing and eventually volatile markets moderate. Markets are unpredictable over the short term, so trying to correctly time buying and selling is very difficult. That’s why it’s, so important to focus on the long-term.
What you can do to help grow and safeguard your super savings
When markets fall, it can be tempting to switch to investments you might think are less risky, like cash. However, the reality is that switching to a more conservative portfolio like cash, could actually have a negative effect on your super balance long term. This is because switching can mean locking in losses and losing the opportunity to benefit when markets start to rise again.
In fact, evidence shows that in a rapidly changing investment market, staying invested and taking a long-term approach can be the lowest risk option.
The charts below are an example of the benefits of staying invested, even as markets move up and down. You can see that staying invested rather than switching to cash when markets fell during the COVID-19 pandemic meant your super savings grew more.
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Investment opportunities arise from volatility
If you feel confident you’re on track with your retirement goals then short-term market movements should not override your plan. In fact, volatile markets can present opportunities for members who contribute to their super when markets are low. You’ll be ‘buying into the market’ when prices are depressed. If you assume that the market recovers (and history tells us it does) you will have bought when investments are ‘good value’.
Our strong long-term performance
We have continued to deliver strong long-term returns. In fact, all options in our MySuper Lifecycle are top 10 performers over the 10-year period to 30 September 2022. And in retirement, Balanced Growth is also a top 10 performer over the same period2.
2. Aware Super Accumulation MySuper Lifecycle incorporating Aware Super High Growth, Growth and Balanced Growth options sourced via SuperRatings Fund Crediting Rate Survey 30 September 2022 (SR50 Growth (77-90) Index - approximately 50 options (High Growth), (SR50 Balanced (60- 76) Index - approximately 50 Funds (Growth) and SR25 Conservative Balanced (41-59) Index - approximately 25 Funds (Balanced Growth). Aware Super Pension Balanced Growth ranking sourced via Super Ratings Pension Fund Crediting Rate Survey 30 September 2022 (SRP25 Conservative Balanced (41-59 Index) - approximately 23 funds). Past performance is not a reliable indicator of future performance.
Related information
- Market volatility and your super
- Understand investment basics
- Understanding investments and risk
- See our latest market review and outlook
- Investing in retirement
- Feeling confident about your investment plan - Watch our video from our Head of Investment Strategy, Michael Winchester talk about what’s happening in markets
3. Fees are payable for comprehensive advice, including about your financial situation outside super. If you decide to move forward with comprehensive financial planning, we’ll explain our fees before you begin.
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4. Awarded Money magazine Best Super Fund, Best MySuper Lifecycle Product, Best Growth Super Product, Best Moderate Pension Product and Best-Value Super Fund for Young People 2023. For more information on our awards and ratings page.
This is general information only and does not take into account your specific objectives, financial situation or needs. Seek professional financial advice, consider your own circumstances and read our product disclosure statement, Target Market Determination and Financial Services Guide before making a decision about Aware Super or Aware Financial Services Australia Limited. Call us or visit our website for a copy. Issued by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL No. 238430). Aware Financial Services Australia Limited is wholly owned by Aware Super Pty Ltd (ABN 53 226 460 365). The trustee of Aware Super is Aware Super Pty Ltd (ABN 11 118 202 672, AFSL 293340).