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How younger members can make the most of market volatility

Unprecedented events have made markets highly volatile. But there may still be ways that people can make a difference to their superannuation – even younger members, with decades to retirement.

In unprecedented times, market volatility and the news headlines that follow can often be a cause of concern for members – particularly when it comes to superannuation. After all, the money you save during your working life could have an impact on your lifestyle in retirement.



Recent developments may have made you more engaged with your super fund than ever before – leading you to wonder what you could be doing for your investments at this time. As a Millennial with a typically longer investment horizon to retirement, is there anything you need to do to help you make the most of your wealth-creation journey? We share some considerations below.



It’s important to remember that markets often experience volatility – and for various reasons, whether political, economic, social or environmental. The Coronavirus outbreak is also a factor – but one that will likely pass in time, as history shows us that markets do eventually recover from such disruptions. For example, since the Global Financial Crisis, global share markets have delivered returns of 10% to investors. In 2019 alone, global shares delivered strong returns of roughly 27%.



Super is likely one of the biggest (and longest-term) investments you will ever make – meaning, it can require a long-term view. Thankfully, time is on your side. As a younger member with decades of wealth accumulation ahead, you will likely have more time to ride out changeable market conditions to generate investment returns over the long term. By the same token, this can also mean that you will likely experience future periods of volatility over the course of your working life.



But while investing for super can require a long-term view, that doesn’t mean super is a set-and-forget scheme. It may feel like a long time away, but being more engaged with your fund now – even in simple ways, such as regularly reading fund updates, staying up to date on the latest market developments, or thinking about your long-term wealth objectives and how your super fund could help you achieve your goals – can be helpful to you later on as you approach retirement.



While market volatility could present investment opportunities, it is also sensible to continue budgeting and saving for a rainy day. For example, when maintaining a long-term view of investing, buying into share markets when markets are down (and cheaper) could mean the value of those investments rises when markets recover over time. However, it’s all about balance. In the current environment where day-to-day lives may be disrupted as a result of the Coronavirus, having a separate savings fund could offer some peace of mind in uncertain times – particularly for younger members who are working towards financial independence or who are kick-starting their careers. 

Government Support

If you have experienced disruptions to your employment, you may also be eligible to access some of your superannuation savings early. The Australian Government announced that eligible members may be able to access up to $10,000 until 30 June 2020, and then a further sum of up to $10,000 from 1 July 2020 for approximately three months. Eligible members will be able to apply through the myGov website from mid-April 2020. You can learn more about these support measures online.

Need help?

The Colonial First State Investments team is working hard to make sure you have the support you need. You can expect that as developments continue to unfold, we will continue closely monitoring markets, sharing regular market updates, and communicating closely with our network of experienced investment managers to skilfully identify the risks and opportunities in investing.



As you keep your long-term goals top of mind, remember: our team is here to help – with news, insights and helpful resources available on our website to help keep you up to date on the latest.


This document has been prepared by Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL). The information, opinions, and commentary contained in this document have been sourced from Global Markets Research, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (CBA). Global Markets Research has given CFSIL its permission to reproduce its information, opinions, and commentary contained in this document and for CFSIL to authorise third parties to reproduce this document. This document has been prepared for general information purposes only and is intended to provide a summary of the subject matter covered. It does not purport to be comprehensive or to give advice. The views expressed are the views of CFSIL at the time of writing and may change over time. This document does not constitute an offer, invitation, investment recommendation or inducement to acquire, hold, vary, or dispose of any financial products. CFSIL is a wholly owned subsidiary of CBA. CFSIL is the issuer of super, pension and investment products. CBA and its subsidiaries do not guarantee the performance of CFSIL products or the repayment of capital for investments. This document may include general advice but does not take into account your individual objectives, financial situation or needs. The Target Market Determinations (TMD) for our financial products can be found at and include a description of who a financial product is appropriate for. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. The PDS and FSG can be obtained from or by calling us on 13 13 36. Past performance is no indication of future performance. Stocks mentioned are for illustrative purposes only and are not recommendations to you to buy sell or hold these stocks. This document cannot be used or copied in whole or part without CFSIL’s express written consent.