Experts warn against ‘knee-jerk reactions’ to superannuation slump as markets plunge
ABC News, 7 April 2025
Executive Director of SuperRatings, Kirby Rappell, said Australians can expect to have about half of their super balances affected.
“For the investment style most people are in, there’s about 30 per cent in international shares and about 20 per cent in Australian shares,” he said.
“So about half of people’s money is invested in equities.”
Because half of Australia’s super is tied up in equities, SuperRatings’ Mr Rappell said people can expect super to be down about half as much as the markets. “That still might mean it’s down 4 or 5 per cent for the month,” he warned. After a number of “smooth” years of very strong super returns, Mr Rappell said it’s important people now brace for uncertainty.
“It’s been quite scary to see, but I think everyone’s got to get comfortable with the fact that volatility is well and truly back.”
Mr Rappell said it’s really important for Australians to focus on the long term. “No knee-jerk reactions are usually the best answer.”
“Trying to time into cash and time out of cash is very tricky to do, so focusing on the long term is probably the best thing you can do right now.”
