That can feel frustrating or confusing, especially when it wasn’t what you anticipated at the time. 

Now that you've made the switch to cash, it's worth taking stock of what it means for your super going forward and what questions are worth asking yourself.

What cash does well

• It protects your balance from further short-term market falls.
• It provides certainty about the value of your super day-to-day.
• It can offer peace of mind during stressful market periods.

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What cash doesn't do well

• It grows very slowly. Cash typically returns at or below inflation, which means it’s unlikely to support long term growth. 
• You may miss market recoveries. When markets rebound while you’re in cash, you’re unlikely to benefit from that recovery and recoveries can be sharp and fast like we have recently been witnessing.
• Its real value can be eroded by inflation. Even if your balance doesn’t fall, inflation can reduce what your money can buy over time.

Why timing the market is difficult

Moving to cash can reduce exposure to market falls and provide more stability in the short term. 

But it can also create a second decision: if and when to make a change again. 

Market recoveries can happen quickly and are difficult to predict and by the time things feel more settled, some of the movement may already have happened. 

That’s why timing decisions can be challenging, even for experienced investors.  

If markets fall and then recover while you're in cash, you benefit from neither the stability of your previous diversified position nor the upswing of the recovery.

What often happens next

One common pattern is that people move to cash during uncertain periods, then stay there longer than they planned. 

Over time, that can change how your super grows - particularly in the periods that follow market downturns.

Finding the right balance

Different investment options are designed for different goals.

Cash offers stability, while diversified options aim to provide growth over time, while managing ups and downs along the way.

Key questions to ask yourself

Now that you're in cash, a few honest questions are worth sitting with:

• Would I be comfortable moving out of cash in the future.  
• Do I have a plan for when I'll review this decision? Without a date in the diary, it's easy to let months drift into years.
• How long until I may need to access my money? If retirement is more than ten years away, short-term market movements may have less long-term impact than they might feel.
• Am I making this decision based on my own financial situation, or based on the news cycle?

Taking a considered approach

Periods of market volatility and global events feel like they are becoming more common, which can make these decisions feel harder than they used to.  

If you’re thinking about what to do next, it’s worth taking time to understand your options. Decisions made in response to short-term changes can have longer-term impacts so it’s important that any change feels right for your situation. 

You don't have to make a binary choice between 'all cash' and 'all growth'. CareSuper offers a range of investment options, including diversified options that blend growth and defensive assets - giving you some exposure to long-term growth while still managing volatility.

Things to consider:

• A balanced or diversified option may suit members who want less volatility without giving up all growth potential.
• You can split your super across multiple investment options if you want flexibility.
• You can change your investment choice at any time via MemberOnline.

How to make an investment choice

If you decide you’d like to review or change how your super is invested, Member Online is the best place to start. When you log in, you can:

• see your current investment option(s)
• explore the full range of CareSuper investment options
• learn more about making the right choice that suits you
• make changes at a time that suits you

Changes made in Member Online are straightforward, and you can update your choice again in the future if your circumstances or comfort level change.

Log in to review your investment options

Support if you need it

The important thing now is to be intentional about what comes next - to make sure 'temporary' doesn't quietly become 'permanent'.

Review your options, set a date to revisit the decision, and consider getting advice if you're unsure. Your future self will thank you for it.

If you’d like help understanding your options, support is available to help you make a confident, informed decision. You can speak with a Superannuation Adviser to talk through your thinking, sense check your options, and understand how different choices may play out over time. Call us to book a chat on 1800 005 166.

_{CareSuper Advice is a financial advice service available to CareSuper members through CareSuper Advice Pty Ltd, ABN 78 102 167 877, AFSL No. 284443 which is licensed to provide financial advice services and deal in financial products. CareSuper Advice Pty Ltd is a wholly owned company of CareSuper (Secretariat Co) Pty Ltd ABN 29 104 826 413, a related entity of CareSuper Pty Ltd ABN 14 008 650 628, AFSL No. 238718 (Trustee) which is the trustee of CareSuper ABN 74 559 365 913 (Fund).}