All investments have risks. Like any other long-term investment, you can expect your super to have ups and downs, which can be caused by global events.
The ups and downs are normal - because the value of the assets (like shares) that your super is invested in also goes up and down. If you see your super balance go down, it can be tempting to make a change to a more conservative investment option, like cash. But when it comes to super, it’s important to focus on the time your super has left to be invested, and have an investment strategy that’s right for your personal objectives, situation and needs.
Super is a long-term investment, but of course some people are closer to retirement than others. Younger people may be happy to ride out the blips and recoveries along the way, while others may be more willing to look at other options because they feel retirement is closer. It’s worth bearing in mind that even if you’re retired or coming up to retirement age, your money may still need to be invested for another 20-30 years. Some people see their superannuation balance fall in value and are tempted to switch into a lower risk investment option, but by doing this, they may effectively be selling shares at a reduced value, and missing out on the higher returns when markets recover.
Before taking quick action with your super investments, you should consider your personal objectives, situation and needs.
The best way to make sure that you’re in the right investment option is to discuss your personal risk profile with a financial adviser. They will be able to recommend the option that’s best suited for you. To book an appointment with a Vision Super financial planner, complete the online form or call the Contact Centre on 1300 300 820 (Monday to Friday 8:30am to 5pm) to arrange an appointment. Advice on certain single superannuation issues like your investment option can usually be provided at no cost to you, over the phone or in person.
It is also important to remember Vision Super offers a range of ‘pre-mixed’ investment options ranging from growth options to more conservative options. These options include different asset types, such as shares, cash, property and infrastructure. If you’re in one of our ‘pre-mixed’ options, you don’t need to worry about monitoring markets and managing your investment choices – Vision Super will do it for you. The Vision Super Investment team continually monitors a range of indicators and make changes as needed, to help protect and maximise your long-term returns.