Super funds have taken yet another beating from the global financial crisis, sliding 19.7 percent last year, and recording a marginal loss of 0.12 percent for December, according to SuperRatings.
The financial crisis, which has seen world share markets decline by 40 to 50 percent, has had a largely negative impact on super funds, but the worst is yet to come with SuperRatings urging Australians to prepare for a second consecutive financial year of negative earnings from their super funds.
Chief executive officer of ASFA, Pauline Vamos, believes that consumers must educate themselves to understanding why these losses are occurring and how their fund’s returns compares against the broader market.
“It is very important that fund members seek information, guidance and advice about their superannuation before they make any decisions.”
SuperRatings founder Jeff Bresnahan agrees. “For most Australians, a balanced or growth superannuation strategy is appropriate given the long term nature of their membership.”