Asset allocation getting more defensive with age, data shows

As is the case as investors age, asset allocation is changing as superannuation fund members make their journey through life, the latest data from SuperRatings showed.

The latest SuperRatings data shows a steady trend toward more defensive assets as super members get older, reflecting the gradual shift in asset allocation determined by superannuation product providers.

This shift to safer asset classes becomes most pronounced from the age of 50, the superannuation research house said.

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In their early working lives, super members on average have a stronger weighting to Aussie and international shares with lower levels of exposure to fixed income and cash, it said.

However, around the age of 50 super members on average tend to have a higher exposure to fixed income and cash at the expense of growth assets such as domestic and international equities, SuperRatings said.

By the age of 75, the average super member will have over 31 per cent of assets in fixed income and cash compared to 17 per cent at age 20 and just over 22 per cent at age 50, it said.

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I thought this was a result of the generic Mysuper investment strategy where it makes members more conservative as they age.

Check the offering and strategy, generally only MySuper with lifecycle stages would have this shift. Other offerings with only the single MySuper product would remain "Balanced' all the way to 65.

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