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).
Super balances went down in February, and have continued to fall throughout March too.
If you've you checked your super balance recently you likely would have notcied this already.
SuperRatings estimates that the median balanced super fund fell by -0.8% in February, and the median growth option fell by 1.2%.
These estimates are likely to increase when the March performance results come in.
Why are super balances falling?
Global share markets have been falling over the past few weeks, in what has been looking more and more like a market correction from its recent peak.
As super funds are major investors in the share market, super balances have taken a hit as a result.
A number of things have impacted the share market's performance in recent months, with President Trump's policiy on tarriffs being one of the biggest influences.
The market also doesn't usually respond well to any form of economic uncertainty - something we've had a lot of in recent times.
But according to the SuperRatings data, even though super balances fell in February, they're still up about 7% for the financial year so far.
Is your super not performing?
Compare super funds and switch to a top-performing fund instead.
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.
"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 can 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.
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