The West Australian – 12 May 2025

SuperRatings director Kirby Rappell says recovery in retirement balances shows risks of trying to panic market

The West Australian, 12 May 2025

SuperRatings has warned about the dangers of trying to pick moving markets after growth-seeking superannuation investors enjoyed a partial recovery after two months of mauling.

The research house estimates so-called balanced super investment settings recovered about 0.6 per cent last month after having plunged more than 2.5 per cent in February and March. Their returns so far for the 2024-25 financial year are 6 per cent for balance funds in accumulation mode..

SuperRatings executive director Kirby Rappell said US President Donald Trump’s tariff announcements early last month had “superannuation returns bouncing around much more than usual”.

But in line with share markets, this volatility eased and balances recovered mid-month as tariffs were paused.

Mr Rappell said recent events “reinforced the difficulty of timing the market”.

“Members that panicked and switched options or withdrew funds may have missed out on this rebound,” he said. “We continue to encourage a long-term mindset around superannuation.

“We believe members are going to need to learn to live with volatility for the next period.”

SuperRatings said recent events reflected the benefits of diversity across super fund portfolios.