Ask the experts: A market update with CareSuper

When global events affect markets, it’s normal to see short-term ups and downs  in super balances.

In the current environment, markets are jumping around day to day, because the ongoing conflict has disrupted global oil supply, pushing prices higher. When oil and energy becomes more expensive, it can lift inflation, which influences interest rates, and inadvertently affects economic growth. Super is invested in assets like shares, property and infrastructure, which are all part of the global economy and can therefore move up and down. As new information emerges, investment markets adjust and balances can move with them.

While we can’t predict what markets will do next, periods of uncertainty and downturns are a normal part of investing. That’s why CareSuper focuses on long-term outcomes, using diversified portfolios designed to manage different market environments over time.

Market movements typically can’t be tied to a single event or a specific timeframe.

Markets may respond to many factors at once and often adjust before events are resolved, as expectations change and new information becomes available. 

What’s important is that CareSuper’s investment strategy is built for the long term. Periods of uncertainty are expected, and our approach is designed to operate through them rather than react to individual events.

If you’re drawing an income and feeling unsure, you’re not alone - this is a common question during uncertain times.

The right approach depends on your personal circumstances, including your income needs, timeframes and comfort with risk. Because pension decisions are individual, it can help to talk through your situation with a Superannuation Adviser.

If you’d like support, our team can help you arrange a conversation with a Superannuation Adviser to review your retirement income strategy and talk through your options.

If you would like to reduce your pension payments, you can make the change in Member Online or by filling in this form.  

Moving to cash during a downturn can feel like a way to reduce uncertainty, but it can also lock in losses if markets have already fallen.

To benefit from switching, you generally need to get two decisions right 

1. when to move out of the market 
2. when to move back in 

This is very difficult to time. We also see that often when members switch to cash, they remain there in the long-term which can have an impact on the long-term growth of their super. 

Rather than reacting to headlines, we encourage members to consider whether their current investment option still matches their risk comfort and timeframe. If you’re thinking about a change, speaking with a Superannuation Adviser can help you work through your risk profile and better understand which option may suit you. You can book an appointment with a Superannuation Adviser by calling 1800 005 166. 

For members approaching retirement, it’s not just about what markets are doing right now - it’s about having a plan.

Retirement strategies are generally designed to manage ups and downs over time by considering both your investment strategy and how income is drawn over the years ahead. Many approaches separate money needed in the near term from money that can remain invested for longer term  needs.

If you’re close to retirement or already drawing an income, more personalised planning can be helpful. A Comprehensive Adviser can work with you to look at your income needs, timeframes and how different parts of your super may be positioned. To get started on a conversation about your retirement plans give us a call on 1800 005 166. 

Whether or not to make extra contributions depends on your individual circumstances and the contribution rules that apply to you.

Contribution eligibility and limits can vary based on factors like age, work status and the type of contribution. A Superannuation Adviser can help you work out whether now is a good time to top up your super, set-up a recontribution strategy or consider a downsizer contribution and they can confirm timing, eligibility and what’s appropriate for you.

This is a common question, particularly when interest rates are increasing.

Deciding whether to pay down debt, invest, or keep funds in cash or term deposits is a personal decision and involves trade offs. Using super to reduce debt can have long-term  implications for your retirement savings.

If you’re weighing options like mortgage repayments versus super contributions or paying off other types of debt, a financial planner can help you work through the pros and cons based on your overall financial position. You can speak to an adviser by giving us a call on 1800 005 166 to book in an appointment.  

At CareSuper, we take a long-term perspective in our investment decision making and recognise that periods of volatility are a normal part of investing. Our portfolios are built on diversification across different asset classes, so outcomes aren’t dependent on any one asset class or market to perform well. This approach is designed to protect the portfolio through different environments rather than react to individual short-term events and has helped protect the portfolio through other periods of uncertainty. 

Our active management approach allows us to respond when markets move, and we use a mix of strategies so we can take advantage of opportunities as they present.  Changing markets can create opportunities for active investors to buy quality assets at better prices and our investment team is continually assessing these opportunities. By actively managing your super, we build portfolios that are resilient through uncertainty while delivering growth over the long-term. Our investment strategy is purposely designed to give you confidence in different market environments and support a smoother ride during times of volatility.

Market impacts are being felt across the industry, not just by CareSuper. Short-term comparisons can vary because different funds apply different strategies which can result in holding a different mix of assets.

In recent years, share market returns have been unusually strong and driven by a relatively narrow group of companies. During periods like this, diversified approaches can look different over shorter timeframes.

CareSuper’s focus is on building resilient, diversified portfolios that can withstand changing conditions and support the delivery of strong long-term-outcomes, rather than chasing short-term-trends. 

If you’d like to talk through your situation, you can contact CareSuper and request a call with a Superannuation Adviser.

As a CareSuper member, you can access investment advice at no additional cost as part of your membership. For members approaching retirement or with more complex needs, comprehensive advice may be appropriate. You can speak with an adviser by calling 1800 005 166.  

Feeling concerned during periods of market uncertainty is completely understandable.

Before making any changes, it can help to pause and consider whether your current investment option still matches your timeframe, comfort with risk, and retirement plans. Investment options are generally designed to be held through different market conditions, not adjusted based on short-term events.

If you’re unsure, speaking with a Superannuation Adviser can help you review your risk profile and understand whether your current option still suits you, without needing to make rushed decisions.

Markets can move in different directions depending on how events unfold, and it’s not possible to predict what will happen next.

Rather than trying to anticipate short-term movements, CareSuper’s-investment approach is designed to manage a range of scenarios - including periods of further uncertainty - through diversification and long-term-positioning.

For members, the most important consideration is how long your money is invested for. Super is generally a long-term investment, and reacting to short-term-movements can sometimes make outcomes worse rather than better. 

While the past few weeks may feel unsettling over the long-term super accounts have grown and it’s important to remain focused on the long-term as historically markets recover after they fall and remaining invested means you will benefit from the recovery. 

There’s no set timeframe for how long market downturns last - they vary widely depending on the cause and how conditions evolve.

What history shows is that markets often begin to recover before news headlines improve, as investors look ahead rather than react to what has already happened. This is one reason why staying focused on long-term goals is usually more important than short-term-market movements.

Periods of volatility are uncomfortable, but they are a normal part of investing over time.

It’s very normal to feel uneasy when markets are uncertain and balances are moving.

If you’re feeling anxious, it can help to avoid making quick decisions, step back from daily headlines, and focus on what your super is designed to do over the long term. Talking things through can also make a big difference.

You don’t have to work it out on your own — CareSuper’s team and advisers are available to help you understand what’s happening and talk through your options, so you can make decisions with more confidence. We encourage you to give us a call if you are thinking of making a change so we can talk through what might be the best approach for you.  

For most members, doing nothing immediately and staying focused on long-term-goals is often the right starting point.

If you’re unsure, the most helpful next step is usually a conversation, not a change. Speaking with an adviser can help you sense check-your situation and understand whether any action is needed based on your personal circumstances. Give us a call on 1800 005 166 to speak with someone about your super.