Volatility makes superannuation rollovers time-sensitive
Superannuation trustees need to ensure fund members know how long rollovers can take, particularly during volatile markets.
That is the assessment of Institute of Chartered Accountants Australia superannuation specialist Liz Westover who pointed to recent commentary by the chairperson of the Superannuation Complaints Tribunal, Jocelyn Furlan, regarding the number of complaints from people concerned their savings had suffered due to rollover delays.
"While market volatility is part and parcel of investment, recent activity has shown us just how volatile the market can be," Westover said.
She said market volatility was now an important factor in deciding when and where to undertake rollovers between super funds, but members needed to be aware of the implications of what they are doing.
"Individuals need to appreciate that a reasonable amount of time is required when requesting a rollover, and even in that time, market movement can be significant," Westover said.
AUTHOR
Mike Taylor
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