COVID-19 predicted to have ‘lasting impact’ on super balances

In the aftermath of the sell-down in equities in early March, half of super fund members believe it will take 12 months or longer for their super balance to recover fully, according to the survey results. Less than a quarter, or 23 per cent, expect a full recovery by the end of 2020.

Investment Trends senior analyst King Loong Choi said engagement with super investments is growing, indicating that super fund members “are now more active stewards of their money”.

“As members scrutinise their super balance and performance more closely, it is important that super funds continue keeping members informed, educated and confident in weathering heightened market volatility,” Mr Choi said.

“At present, just 61 per cent of members believe their super fund’s range of investment options is sufficient to meet their needs, while 31 per cent say they are unsure, further highlighting the need to alleviate members’ knowledge gaps.”

The survey results also show that 68 per cent of members have actively sought guidance from their super fund, particularly to find basic information such as fees and insurance premiums, their likely balance at retirement and the balance needed to retire comfortably.

“As Australians engage more directly with their super fund, their satisfaction and confidence rises. Those who sought guidance tend to be more satisfied with their funds’ efforts to help them feel confident about the future,” Mr Choi said.

“It is vital that super funds continue promoting and facilitating their member guidance services, given its positive, tangible impact in lifting member engagement and confidence.”