Four reasons to have confidence in super in turbulent times

Financial advice plays a critical role in the financial health and confidence of Australians, according to the report. It also found that the cost of getting advice is a barrier for many.

Crucially, the study also revealed that seven in ten Australians don’t realise they can pay for advice from their super to plan for their own financial security. 

Advice paid for from super instead of the weekly budget, could help put Australians thousands of dollars further ahead over time.

You can also talk to our guidance team, for free, general advice. Book a call. 

Advised Australians are more financially resilient than their unadvised counterparts, the research showed, saying they could cope for longer if they lost their job.

Three-quarters had more trust in their financial adviser than any other source, saying their adviser gave them confidence in their ability to achieve their financial goals.

“High levels of trust are critical during periods of volatility when market fluctuations can be unsettling and drive people to seek advice from unqualified sources,” the study found.

As the post-tariff bounceback in financial markets this year shows, while super balances may fluctuate when markets are turbulent, having the confidence to ride out a downturn usually pays off.

While it’s only natural to be concerned, and to consider switching your super to less risky options in the short-term, the long-term nature of super means often the best thing to do when markets are volatile is nothing.

Switching to more defensive assets, such as cash, may lock in losses and cause you to miss out on the gains that follow. 

If you’re close to retirement, it may be worth considering additional steps to minimise the effect of short-term volatility on your retirement savings.  

While super is generally preserved for retirement, it is possible to access super before then in a limited number of ways. Some of these include:

• using eligible additional voluntary contributions to save for a first home deposit faster through the First Home Super Saver scheme,
• through financial hardship access provisions, or 
• by setting up a transition to retirement pension before you retire. 

In all cases, conditions apply before super can be released, in order to protect your retirement savings. 

Super can help build financial confidence and resilience by providing access to advice and providing a long-term investment that has plenty of time to recover from short-term market turbulence. And it may be more flexible than you realise. 

CFS is committed to helping Australians build financial confidence and achieve financial freedom. 

If you would like help with your super, investment or advice strategy, book a free consultation with our guidance team.