But economists say pulling money out of retirement savings to try to pick the market can result in further losses
While the reaction to war in Ukraine, inflation and interest rates will affect super, experts say savers have done well in recent times despite global disruption.While the reaction to war in Ukraine, inflation and interest rates will affect super, experts say savers have done well in recent times despite global disruption.
Mano Mohankumar, a senior investment research manager at Chant West, which monitors super fund returns, said preliminary data for the month of May was pointing to stagnant returns for the median growth-focused super fund by the end of the financial year, 30 June.that median returns fell 1.2% in April, dragging the return for the first 10 months of the year down to 1.2%.“For the one month of May, we’re kind of looking at down about 1%, say, so net it is pretty flat,” Mohankumar said.
If the median fund does go backwards this financial year, it will be for only the fifth time since the introduction of compulsory super in 1992. “We always say you’ve got to keep in mind that super is a long-term investment and you don’t want to be distracted by short-term noise. Being distracted by short-term noise can really hurt your long-term outcomes.
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