Why your super balance is falling right now (and what to do about it)

Yes, super balances are falling. No, I'm not panicking (and neither should you).

While super balances have already been falling in February and March, it's been even worse in April.

Following Trump's global tariffs announcement the US stock market had its worst week since the 2020 market crash, and the ASX followed suit on Monday 7 April wiping billions of dollars from the local market.

This, in turn, has wiped a lot of money from Australian super balances.

Why are super balances falling?

As super funds are major investors in the share market, super balances have taken a hit as a result of global market falls.

A number of things have impacted the share market's performance in recent months, but President Trump's policy on tariffs is without a doubt the biggest influence.

The market also doesn't usually respond well to any form of economic uncertainty - something we've had a lot of in recent times.

SuperRatings estimates that the median balanced super fund fell by -0.8% in February, and the median growth option fell by 1.2%.

But according to the SuperRatings data, even though super balances fell in February and will likely be down again in March and April, they're still up about 7% for the financial year so far.

What to do about your super right now

Honestly, the general advice is to do nothing different with your super right now.

This can be difficult to do when you're watching your balance go down before your eyes. But superannuation is a long-term investment, and market falls are expected. Even market falls as significant as this.

"Saving for retirement is like running a marathon, and sometimes, marathon runners need to dodge obstacles; the current share market volatility is one of those. If you've prepared for your race in the form of good super habits and a clear plan, then the obstacles should only present small inconveniences," financial literacy expert Pascale Helyar-Moray told Finder.

"Switching to a lower risk option in response to share market falls is a short-term response. Better to stick to your training plan - and remember that in the end, the market always recovers," she said.

If you make a quick decision to switch your super to a lower-risk cash option during market falls, there's a chance you'll miss the rebound when markets recover. And the market always recovers - but no one can predict exactly when.

"Even the best professional investors only make six correct investment decisions out of every ten. So rather than try to compete with them, remember that superannuation is about playing the long game; rather than trying to time the market, it's about time in the market," said Pascale.

That said, it's never a good idea to stick around with a low-performing, high-fee super fund. So if your super isn't performing well over the long term (not just right now!) it could be worth comparing your options and making the switch.

What about the super funds being hacked?

Some of Australia's major super funds have been hacked this past week causing a few members to have their entire super balance stolen.

This, as well as the general panic that the share market falls have created, means a lot of people will be checking their super at the moment.

Check out our video below with our top tips for keeping your super safe right now.

This article was originally published on 19 March but has been republished on 7 April with extra, updated information.