What do changes in investment prices mean for your future retirement security?
While investments will rise and fall over time, it’s important to understand how swings in performance – known as market volatility – can affect your super.
Changes in investment prices are more noticeable in the short term. And it's not unusual to expect periods of volatilty.
Labour shortages, increased consumer spending and global supply chain issues have all affected investment performance recently. This has also contributed to rising inflation, which can increase market volatility, together with lower fixed interest and equity (share market) return.
And while central banks have been rapidly raising interest rates, the increased cost of borrowing has seen local and global investment markets underperforming.
Over the last 20 years, even significant market events, like the Global Financial Crisis, appear relatively smooth when looking at overall long-term growth.[1]
Diversification is one key to AustralianSuper's long-term investment strategy, helping to stay resilient in the face of changing market conditions. And while it can be tempting to switch options, it is important to remember that super is a long-term investment.
Learn more about market volatility and how AustralianSuper is focused on providing strong, long-term returns for members via the following article: Understanding Volatility.
1. Investment returns aren’t guaranteed. Past performance isn’t a reliable indicator of future returns.
This information may be general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement available at australiansuper.com/pds or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/tmd.
Sponsored by AustralianSuper Pty Ltd, ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.
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