Retirement
Is my superannuation safe from coronavirus?
The Barefoot Investor has spoken out in response to the large number of Australians currently asking: Is my superannuation safe?
Is my superannuation safe from coronavirus?
The Barefoot Investor has spoken out in response to the large number of Australians currently asking: Is my superannuation safe?
Super funds are reporting an increase in members contacting them to inquire as to whether their retirement savings are going to be OK.
According to comparison website CHOICE, the consensus from experts is not to panic at the impact of the coronavirus on the sharemarket.
It’s a stance also advised by the Barefoot Investor, Scott Pape.
He considers it a “bad idea” to try to move your super around to counter any impacts from the coronavirus.
“If you look at history, these tragedies impact people, but they’re short-term health crises, not long-term financial crises. In the long term, we know the sharemarket goes up,” he said.
Looking to previous public health crises such as Ebola, SARS and swine flu, the sharemarket has historically rebounded strongly, it was outlined.
You should still be reviewing your risk strategy
Despite repeated calls against panicking, Mr Pape is of the opinion that now is as good a time as any to be reviewing your risk strategy.
CHOICE has reiterated the accepted wisdom “that younger people can have their super invested with a more high risk/high return strategy when retirement is some way off and they’re still accumulating retirement savings”.
For those who have already built up their retirement savings and are in a later stage of life, a more conservative approach (with less exposure to shares) might make more sense.
For this cohort, “you don’t want to be the person exiting the market just after a crash”.
“Should you be doing anything with your super?” Mr Pape has reflected.
“Yes.”
But should it be in reaction to the coronavirus?
“No, it should be about making sure you have the appropriate risk for your age and your risk tolerance,” he urged.
The Barefoot Investor advises that anyone who is approaching retirement should build up a “cash buffer” to keep some of their nest egg out of the way of market volatility.
And for anyone who is under 40, Mr Pape said they can “be cheering the market going down”.
“The stock market’s on sale and we know the stock market always goes higher,” he said.
Stay up to date with the latest coronavirus market news with nestegg's dedicated real-time updates here.
RELATED ARTICLES
About the author
About the author
Superannuation
Rest calls for reform of superannuation rules for young workers
In a bold move to enhance the financial future of young Australians, superannuation fund Rest is advocating for the abolition of what it deems an "unfair and outdated" rule affecting under-18 workersRead more
Superannuation
Australians face readiness crisis as payday super reform looms
As the implementation date for one of Australia’s most significant superannuation reforms draws near, new research reveals a startling lack of awareness and preparedness among both businesses and ...Read more
Superannuation
Rest posts healthy returns following a positive end to 2025
Rest, one of Australia's largest profit-to-member superannuation funds, has reported impressive returns in its flagship MySuper Growth investment option for the year 2025. The fund is optimistic about ...Read more
Superannuation
Rest marks milestone with first private equity co-investment exit
In a significant development for Rest, one of Australia’s largest profit-to-member superannuation funds, the organisation has announced the successful completion of its first private equity ...Read more
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
Superannuation
Rest calls for reform of superannuation rules for young workers
In a bold move to enhance the financial future of young Australians, superannuation fund Rest is advocating for the abolition of what it deems an "unfair and outdated" rule affecting under-18 workersRead more
Superannuation
Australians face readiness crisis as payday super reform looms
As the implementation date for one of Australia’s most significant superannuation reforms draws near, new research reveals a startling lack of awareness and preparedness among both businesses and ...Read more
Superannuation
Rest posts healthy returns following a positive end to 2025
Rest, one of Australia's largest profit-to-member superannuation funds, has reported impressive returns in its flagship MySuper Growth investment option for the year 2025. The fund is optimistic about ...Read more
Superannuation
Rest marks milestone with first private equity co-investment exit
In a significant development for Rest, one of Australia’s largest profit-to-member superannuation funds, the organisation has announced the successful completion of its first private equity ...Read more
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
