Australia’s largest retirement fund has suffered its biggest drop in annual returns since the global financial crisis.
AustralianSuper recorded a 2.73% drop in annual yields, its worst result since the global financial crisis of 13 years ago.
It has raised concerns that other super funds are also likely to fall.
AustralianSuper has nearly three million members. (9 News)
“Superrating expects a 3.3% drop for the average balanced option,” said Kirby Rappell of Superrating.
The fall of AustralianSuper is significant because it is the largest super fund in the country, valued at $ 261 billion with 2.7 million members, and 90 percent of its members are invested in the balanced fund option .
The fall in annual yields today is even better than in 2008, when the balanced fund fell by almost 5.8%, and also fell by more than 13% in 2009.
The fall is also not surprising given the volatility of global stock markets at the moment.
Global stock markets are currently volatile. (9 News)
In the nine recessions since the 1960s, global markets fell about 30 percent before each.
“Now, to put it in perspective, U.S. markets have already gone down 23 percent. The Australian market is doing better than that right now,” said Martin Lakos of Macquarie Wealth.
“In general terms, the cycle is about 18 months and we have been six months.
“This would suggest that there is certainly more volatility.”
When the market is good it can be very good, for example, last year AustralianSuper recorded a return for its members of over 20 per cent.
“We’ve seen the fifth loss in 30 years, but we’ve actually seen 25 positive returns and I think when you think about this long-term trip, the super has a great story to tell, seven percent annually since 1992,” he said. dir Reminder. .
It is one of the biggest falls in yields since the global financial crisis. (9 News)
Experts have warned that retirees should not make any abrupt decisions in reaction to today’s sharp drop in yields.
“But if we think about someone in their 50s or 60s now, their super still has to last them another 20 or 30 years,” Rappel said.
“So it’s having a considered vision.”
“Number one don’t be scared, and number two, if you’re not sure, look for good advice,” Lakos said.
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