While super is for the long-term (even in retirement), drawing an income from your savings when markets are dropping can be a source of stress.
Although you must always take your own specific circumstances into account, here’s some general tips for managing your savings during periods of volatility.

1. Don’t panic and make snap investment decisions like moving to cash. Consider whether the best thing to do is to stick to your plan. If you feel the stress of markets falling is something you no longer want to deal with you can speak to TelstraSuper Financial Planning about your investments. This market volatility is coming after a period of very strong returns following the drops in the markets experienced at the start of the COVID-19 pandemic
2. While there is volatility you may want to reconsider the need to make any lump sum withdrawals. We know there may be times you’ll need additional money but now’s a good time to reconsider anything extra you may have been thinking of taking out of your savings.
3. Review the investments you are drawing an income from. If you don’t currently have a cash reserve consider carefully whether now is the time to switch into cash (see point one above). TelstraSuper Financial Planning can help you with your investment strategy.
4. Use cash in bank accounts or utilise term deposits to fund income requirements. If you can avoid taking money from your super and have cash reserves outside of super, now may be the time to consider drawing down on your assets outside of super that may not be affected by the market volatility.

Investments purpose built for retirement

The Lifestyle investment options which were introduced in November 2021 were purpose built for our members in retirement to help manage volatility by reducing the exposure to equites compared to six months ago, and these portfolios remain well-diversified.

These options were top 10 performers for the 10 years to 31 December 2021*. While markets may be volatile in the short-term, this comes off the back of very strong long-term returns.

Learn more about Lifestyle Investment options

Let us help you navigate these uncertain times

If you want to discuss your super savings or retirement strategies in light of the recent volatility, TelstraSuper Financial Planning has a team of financial advisers that can work through your retirement strategies. To book an appointment call 1300 033 166.

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*Based on Monthly SuperRatings Comparison over a 10 year period up to 31 December 2021, which you can only access by registering on the SuperRatings website. The Lifestyle Moderate Income option was introduced on 2 July 2012. As such, no long-term historical investment returns are available. For further information about SuperRatings ratings and methodologies go to superratings.com.au

Any general advice in this document has been prepared without taking into account your objectives, financial situation or needs. Before you act on any general advice in this document, you should consider whether it is appropriate to your individual circumstances. Before making any investment decision, you should obtain and read the relevant product disclosure statement which is available on the Website or by calling 1300 033 166 between 8.30 am and 5.30 pm (AEST) Monday to Friday. You may wish to consult an adviser before you make any decisions relating to your financial affairs. To speak with an Adviser from TelstraSuper Financial Planning call 1300 033 166.