The Australian Institute of Superannuation Fund Trustees (AIST) has urged Australians not to stop investing in super despite recent share market volatility.
Recent share market volatility should not dissuade Australians from investing in super, urged the AIST.
AIST chief executive officer Fiona Reynolds said while the recent market correction would reduce super fund returns in the short term, members needed to take a long-term view.
“Remember, super is a long-term investment,” he said. “The diversified nature of most super fund portfolios mean they are able to ride out a bumpy share market and deliver secure investment returns in the long run. That’s the strength of super.”
Reynolds pointed to the latest SuperRatings figures released today showing that even with the recent fall, Australia’s major super funds had returned 8 per cent for 2007, making that the fifth consecutive year of solid gains.
According to Reynolds, of particular note was the strong performance by the not-for-profit super sector for the five years to December 2007. AIST not-for-profit member funds took out all of the top 10 performance places (balance investment options) over the five-year period, with MTAA Super and AustralianSuper returning 15.5 per cent and 13.9 per cent per annum respectively.
“Super fund members shouldn’t make knee-jerk reactions to this volatility. Compared to short-term share market corrections, contributing less than you need to for super could be a much greater risk to your retirement lifestyle,” Reynolds said.
