Understanding market volatility
2026 | 10min read
March 2026 quarter update
It was a fairly challenging quarter to 31 March, as share markets reacted to global uncertainty due to events in the Middle East.
During the quarter, Australian shares fell by around 1.5% and international shares by more than 6%. In contrast, our High Growth option, where most members are invested, declined by a much smaller 2.8%. This shows the benefits of holding a diversified portfolio which includes a wide range of different types of investment.
Importantly, market moves were far less severe than those experienced during periods like the COVID-19 pandemic.
We expect some volatility in markets may continue, although things have settled since the end of March.
The bigger picture
Short-term ups and downs are a normal and expected part of investing. But things are still positive and our members retirement balances are still on track.
While positive returns are continuing to build members' balances, returns have moderated. This follows three consecutive financial years of double-digit returns in High Growth, so some moderation is a normal and expected part of the investment cycle.
At times like this, we remind our members to keep calm, even when markets aren't, and keep a long-term view.
Read our latest Market Review & Outlook.
Market volatility, or market ups and downs, is a normal part of investing. Learn about why markets rise and fall over time and what it means for your super.
Market update: 6 March 2026
No matter what’s happening around the world, we’re committed to safeguarding your retirement outcomes. At Aware Super, our investment approach is designed to help withstand market fluctuations over the long term.
Thinking about volatility in retirement
We understand that if you're retired, or close to retirement, market ups and downs can feel especially worrying. Here we guide you through the key things to think about.
What is market volatility?
Market volatility means the ups and downs in markets which happen in response to changes in the value of investments, like shares or property.
Volatility happens as investors react to different pieces of news or events and try to interpret whether they’re positive or negative for the value of their investments. Your super is an investment, so its value can also go up and down as markets move.
Help and guidance when markets are volatile
You can’t avoid market volatility, but we can help you stay on top of what’s going on and what it means for your super.
You ask. We answer. Here’s the often-asked questions.
Market ups and downs can be unsettling, so we’ve put together some clear-cut answers to help you feel more confident during market volatility.
Market volatility means the ups and downs in markets as assets change price. When asset prices change it can change the value of your investments, including your investments in super.
Market volatility happens as investors react to different pieces of news and try to assess how the new information might affect returns from their investments.
It’s a normal part of investing and happens in response to many different things including economic data, political announcements and geopolitical events.
When markets are moving up and down we always encourage members to stay calm and not react immediately. Often the best course of action is to stay invested and stay focused on your long-term plan. History tells us that markets generally recover and rise again over time.
Short-term market volatility like this is a normal and expected part of investing and happens in response to many different things. Over the period your super is invested, it’s likely you will invest through strong markets as well as more difficult periods and even recessions.
Periods of market volatility are not unusual - the Global Financial Crisis and the COVID-19 pandemic are two examples of periods when significant market volatility was followed by a recovery in markets.
While no one can predict the future, history shows us that market activity like this is not unusual, it happens regularly, and markets generally settle down and recover.
Often the best course of action is to focus on your long-term goals and stick to your long-term strategy. If you switch after a market fall you risk locking in losses and not benefitting when markets rise again. Short-term volatility typically has little impact on long-term returns, but switching can have a negative effect on your balance over the longer term.
You can see in the following graphs the effect on members’ balances of switching to cash following the Covid-19 market falls.
Market volatility graphs
Source: Aware Super. The chart shows $100,000 invested in the Aware Super Future Saver High Growth option on 31 December 2019 and the different unit price investment return series; comparing staying invested in High Growth with switching to the Cash option on 31 March 2020. Past performance is not a reliable indicator of future returns. See our website for Investment Performance of our investment options.
What if I’m retired?
When markets are uncertain, our retired members often ask us if they should switch to cash, particularly if they see their balance go down in the short term. Cash can feel safer, but returns are much lower, and switching to cash when markets are moving around can lock in losses. The graph below shows the effect of switching after the Covid related market falls.
Market volatility graphs
Source: Aware Super. The chart shows $100,000 invested in the Aware Super Retirement Income Conservative Balanced option on 31st December 2019 and the different unit price investment return series; comparing staying invested in Conservative Balanced with switching to the Cash option on 31st March 2020. Past performance is not a reliable indicator of future returns. See our website for Investment Performance of our investment options.
You can be confident that your super is in expert hands at Aware Super. Our specialist investment team is experienced at managing your investments in all market conditions and through different market events.
Our long-term focus and diversified portfolio are designed to ride out periods of short-term volatility and to grow your savings over the long term.
If you’re one of our younger members, remember that you have a long-term investment horizon, so don’t need to worry so much about short term dips. It’s likely you’ll be investing through periods of strong growth as well more difficult periods and have time on your side to build your savings.
If you are nearing retirement, remember you will also likely have a long-term horizon. If you’re invested in our default Lifecycle option, which is where most of our members are invested, our approach means your super is less exposed to share market risk over time, which can help reduce the impact of volatility.
If you’re retired, we understand that you are funding your lifestyle from your super balance – so safeguarding what you have is very important. If you’re invested in one of the options typically chosen by retirees, we build in more defensive assets to help cushion your balance from extreme market falls – to help give you confidence that your money will last for longer in retirement.
We're here to help.
For more information, please visit our Learn Hub for education and resources or contact us directly on 1300 650 873.
