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.
About the author
About the author
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more