Value of advice highlighted for super accounts
Responding to short-term market moves can have a detrimental effect on your super balance, as those who switched to cash last March could be up to $27,000 worse off (based on a balance of $100,000), according to SuperRatings.
Kirby Rappell, SuperRatings executive director, said: “We looked at the impact of switching out of a balanced or growth option and into cash at the start of the pandemic and found that those with a balance of $100,000 in January 2020 and who switched to cash at the end of March would now be around $22,000 to $27,000 worse off than if they had not switched”.
This effect of switching into cash as a response to market turmoil was also seen when looking at returns over the past 15 years, as a typical balanced super option balance of $100,000 in July 2006 would have accumulated to $247,557.
Rappell said most super funds offered scaled advice for free or at a low cost, with members able to get advice on topics such as contributions, investment options, insurance in the fund and the transition to retirement.
“For members who want more tailored advice, some funds will offer comprehensive advice that will also take into account your financial assets outside of superannuation,” Rappell said.
“While there will be a cost associated with this comprehensive advice, most funds will allow the cost of the advice to be deducted from the superannuation account, just make sure you check any costs and how they can be paid before agreeing to get the advice.”
Growth in $100,000 invested over 15 years to 31 July 2021
Recommended for you
Delayed climate action could wipe hundreds of billions from superannuation balances by 2050, according to new analysis from Ortec Finance.
APRA deputy chair Margaret Cole has called on superannuation trustees to accelerate efforts to support members moving into retirement and to strengthen protections against growing cyber and operational risks.
Super trustees need to be prepared for the potential that the AI rise could cause billions of assets to shift in superannuation, according to an academic from the University of Technology Sydney.
AMP’s superannuation business has returned to outflows in the third quarter of 2025 after reporting its first positive cash flow since 2017 last quarter.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
