Market volatility and your super

Recent global events have caused financial markets to move up and down more than usual. When this happens, you may notice changes in your super balance. While this can feel concerning, it’s important to remember that short-term market movements are a normal part of investing.

Superannuation is designed to be a long-term investment, often spanning decades. Over that time, markets will experience periods of growth as well as periods of volatility. Events such as geopolitical tensions, inflation concerns or economic uncertainty can affect share markets and investment returns in the short term. Because super funds invest in these markets, your account balance can move up and down.

At legalsuper, our MySuper Balanced and Diversified investment options are invested across a range of asset classes. For example, our MySuper Balanced Fund includes Australian and Overseas shares, Property, Infrastructure and Fixed Interest. This diversified investment approach is designed to help manage risk and smooth returns over time, so that the performance of any single market or asset class has less impact on your overall super balance.

Our investment team and external investment managers monitor global developments and financial markets. They focus on maintaining a disciplined, long-term strategy aimed at delivering sustainable outcomes for legalsuper members. Our MySuper Balanced Fund returned 7.8% p.a. over the 10-year period to 31 December 2025¹ over a period of high market movement. Periods of volatility are factored into investment planning, and in some cases can also present opportunities to invest in quality assets.

Staying focused on the long-term purpose of super - building savings for retirement - can help you stay on track even during periods of market uncertainty.

What can you do?

When markets are uncertain, it’s usually prudent not to make rushed decisions about your super. Switching investment options during a market downturn can lock in losses and may mean missing the recovery when markets rebound.

Instead, it may be helpful to take a step back and consider your long-term retirement goals. Reviewing your investment options, understanding your risk tolerance and considering how long you have until retirement can help you decide whether your current strategy still suits your needs.

If you’re unsure about how market changes may affect your super, support is available. Legalsuper members can review their account online, explore investment options, or speak with a Client Services Manager.

 

¹According to SuperRatings' SR50 MySuper Balanced (60-76) Index. Investment returns are net of tax and all fees except the fixed dollar administration fee. Past performance is not an indicator of future performance.