Super strategies for uncertainty and market volatility
June 28, 2022
The recent market downturn may have, understandably caused some concern, even if you aren't nearing retirement. So, we’ve put together some super strategies that may help you feel more confident and in control during this time.
Try not to panic
There’s no need to panic and make snap investment decisions. Holding onto your investments, even during downturns, can be an effective strategy if your financial goals and situation haven't changed*. Here are some questions you may wish to ask yourself.Determine if the downturn is an opportunity
If you think there is opportunity in the current market, consider if you have capacity to invest additional money into super. There are limits on how much super you can contribute every year, so be sure to check whether you are nearing your limits before you contribute more.Consider if the time is right to transition to retirement
If you are in part time or casual employment and you are of preservation age you also have other options, such as the ability to commence a transition to retirement pension and access you super as an income stream. Please contact us to discuss your eligibility and to establish if this is the right decision based on your circumstances. Again, it’s important to consider the consequences of taking out super now when your balance may have been affected by market volatility.
If you can delay retirement, it is likely you will work longer and continue to add to your super. Now might be a good time to review your retirement plans and what you can and can’t put on hold.
Protect yourself
Ensure your estate planning is up to date, including your Will, Power of Attorney and your beneficiary nominations.
Review your insurance levels and ensure they are sufficient to provide an appropriate safety net in the event of illness or death. If you have income protection this may provide you with an income if you can’t work due to illness or injury. However, it does not cover loss of job.
Maintain your mental health
During times of uncertainty, it can be easy to let your mental health suffer but remember that these uneasy times do eventually pass. It’s important to maintain your sense of community and share your concerns with your partner, family and friends. You may also like to read our article on what mental health professionals do to reduce stress or our favourite exercises for winter.
Seek advice
If you have imminent retirement plans or need help with any of the above super strategies, we suggest you discuss the impact of this downturn with a financial adviser and then alter your plans accordingly.
Join a webinar
Our Chief Investment Officer, Graeme Miller is also presenting a webinar called, 'Your volatility questions answered' in July 2022. You’ll hear from Graeme about how markets have recently performed and what the coming year may bring.
* Past performance is not a reliable indicator of future performance. https://moneysmart.gov.au/covid-19/super-and-shares