Share market woes hit super

Volatile stock markets are again threatening superannuation payouts.

Jeff Bresnahan, the Managing Director of SuperRatings, says:”…Australia’s super funds have been well and truly caught up in the May correction across world markets.”

He said the estimated loss – “as of yesterday” would be some 4.1 per cent.

Mr Bresnahan said, though, that this had followed “a solid gain” of 13.9 per cent over the previous 12 months.

He noted,  too, that Australian mining stocks had suffered a 2 per cent fall, immediately after the Federal government announced its new super profits tax, on the nation’s resource industries.

Thousands of Australians, who retired after the share market crash of late 2008, were shocked at the hit it inflicted on their payouts.

However, there have been significant gains since then.

Mr Bresnahan noted that.

“The solid long term results continue to reinforce the success of a diversified portfolio across various economic cycles,”
he said.

However Mr Bresnahan added a warning.

“…but the increased volatility within these portfolios is an interesting addition to the debate,” he said.

Mr Bresnahan said that complocatef the strategies that should be followed, in the new investment scene.