When the pandemic reached Australia’s shores in March of last year, there was panic. Supermarket shelves were emptied and the stockmarket fell by more than 30 per cent in just two months.
Australians who switched to cash last year will pay a hefty price as most funds set for double-digit yearly returns.Research firm Super Ratings has declared the country’s super funds are on track for double-digit returns this financial year. Through May, the average “balanced” fund grew by about 1.1 per cent, pushing projected returns for the full financial year up to 15.8 per cent.
As more vaccines are administered, the likelihood of open borders, population growth and international travel edges closer. These developments all have positive implications for the sharemarket – and your super.But if the pandemic has taught us anything, there remains no space for complacency. Unresolved tensions with China could derail economic progress, and further complications with the vaccine could dampen confidence.
If you become too engaged and continually look at your super balance you can be tempted to make knee-jerk decisions, such as switching to a cash investment option if stocks start to fall. If you are not engaged enough and rack up multiple super accounts, balances can be eroded by fees. “The government wants people to be more engaged with their super,” Scheerlinck says. “But there needs to be informed engagement and that requires strong financial literacy and strong financial advice in order to make those decisions.”
The error of judgement was not “terminal”, she says, but reinforced the importance of looking at long-term super fund returns, rather than checking in on a month-by-month or day-by-day basis.
Why are comments disabled under your articles on issues which severely impact women? (The Transgender & FIFO workers) This deliberate stifling of free speech comes across as totalitarian & why would you do that?
CharlotteGriev1 wait what... did someone just say stay ignorant, dont think too much, leave it to the experts & their rent seeking behaviour?
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