ASX crash: What to do about your superannuation
Worried about your super balance at the moment? Here are a few things you can do to get yourself in a good position.
The conflict in the Middle East is impacting global and local sharemarkets (among other things), with around $100 billion wiped out from the ASX in the last few days alone.
But it's not just the sharemarket that's falling - it's all of our superannuation balances too.
Here are a few things you can do right now to feel confident that your super is set up for success.
Haven't looked at your super in a while?
Compare funds and switch to one with better returns and lower fees.
1. Don't panic!
It might seem shocking to see your super balance go down, but volatility and market falls are normal and expected.
Superannuation is a long term investment, and over the long term sharemarkets always recover and go up.
Switching to a lower-risk cash option after the market has already fallen only locks in the loss, and you also risk missing out on the rebound when the market recovers (which it always does).
It's also worth remembering that your super balance is likely invested in a whole range of different assets, not just shares.
2. Take a look at your super
If you haven't looked at your super in a while it's a good time to do so.
Log into your super fund account online and see what super investment option you're currently in, and whether or not this still aligns with your goals.
For example, if you're in your 20s, 30s or even 40s you might want to switch to your fund's high growth option instead of a balanced or moderate option.
3. Check your projected retirement balance
A lot of fund's offer a projected retirement balance, based on your current income and the performance of your fund.
If your fund doesn't have this, you can use Finder's superannuation calculator instead.
Seeing your estimated retirement balance can help reassure you that short-term market falls won't have too much of an impact on your balance over the long term.
And, if your projected balance is lower than you were expecting, you can start to make some changes to help grow your balance.
The main ways to help boost your balance are switching to a fund with higher long-term returns, lower fees and making extra contributions yourself.
4. Check for multiple funds
It's also a good idea to check if you've got multiple super funds open in your name (millions of Aussies do without even realising).
You can do this by logging into your myGov account online, going to the ATO services and clicking the 'Super' option to see your current funds.
If you've got more than one fund, consolidate them right away to instantly cut down on the fees you're paying.
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