AUSTRALIANS are being urged to resist the urge to tinker with their superannuation as global markets react to escalating geopolitical tensions, with new data showing a surge in member activity during recent volatility.
Industry fund HESTA says investment switching and online engagement have spiked following instability linked to the Iran conflict, echoing patterns seen during previous market shocks.
The fund reported a noticeable rise in members moving their savings into defensive options such as cash and term deposits, particularly after a sharp market drop on March 9, when the ASX200 fell 2.8 per cent and oil prices surged past US$110 a barrel.
While switching activity has since eased, it remains above normal levels.
At the same time, visits to HESTA’s investment information pages jumped nearly 37 per cent in March, highlighting heightened concern among members.
HESTA chief executive Debby Blakey said the reaction was understandable but warned that short-term decisions could have long-term consequences.
“We understand news of the conflict in Iran and the impact on global markets can feel unsettling, but history shows staying invested through market ups and downs typically delivers stronger long-term returns for our members,” Ms Blakey said.
“Super is a long-term investment. While it’s important to stay informed, knee-jerk reactions to short-term market movements can crystallise losses and risk missing out on a market bounce back.”
Research from the fund suggests those who switch to conservative options during downturns risk significantly lower retirement outcomes.
A member with $100,000 who moved into cash during the COVID-19 market shock and delayed switching back could be more than $20,000 worse off after five years.
Broader trends suggest Australians are paying closer attention to their retirement savings during uncertain times.
A HESTA survey found 43 per cent of members were more likely to monitor their super balance during periods of volatility.
Ms Blakey encouraged members to seek advice and focus on long-term goals rather than short-term market movements.