![\"Aussie](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/03\/8300ba30-2196-11f1-b7d1-0fadb9d71305.png\")
Aussies are being warned against switching their super to a more conservative investment option in response to volatile financial markets. (Source: AAP) <\/p>\n Aussies are being warned against switching their super to a more conservative investment option in response to volatile financial markets. (Source: AAP) <\/p>\n
Aussies are being warned over a simple superannuation mistake<\/a> that could cost them thousands of dollars each year. The Aussie sharemarket<\/a> is down $200 billion since the start of the Iran war, which has meant workers have seen their retirement savings<\/a> take a tumble.<\/p>\n When markets fall, the temptation to switch your super<\/a> to a conservative investment option like cash can be overwhelming. But new analysis by the Super Members Council has laid bare how this could leave you worse off.<\/p>\n In the worst case, someone with a $100,000 balance who switched to cash at the Covid-19 trough could be around $50,000 worse off over five years.<\/p>\n RELATED<\/strong><\/p>\n If you switched during the market volatility sparked by US President Donald Trump\u2019s tariff policy<\/a> last year, you could be around $7,000 worse off over just one year.<\/p>\n Super Members Council executive general manager of strategy and insights, Matt Linden, said switching during a market downturn<\/a> could mean you potentially lock in the losses and miss the recovery.<\/p>\n \u201cMarket movement is uncomfortable, but switching during a downturn is like turning down a side street to avoid traffic right before the main road you’re on clears \u2014 it usually leaves you worse off in the long run,\u201d he said.<\/p>\n \u201cFor most working super fund members, recent market movements will have little impact over the medium to longer term.<\/p>\n \u201cFor current retirees or pre-retirees heading towards retirement soon, money that remains in super for many years enables short-term losses to balances to bounce back.\u201d<\/p>\n Financial adviser James Wrigley has also warned nervous Aussies against switching their super to cash<\/a>.<\/p>\n \u201cPeople feel like they need to do something and it makes them feel good that they\u2019ve done something,\u201d he told Yahoo Finance.<\/p>\n \u201cBut very few people know when the top is and when the bottom is, to sell out at the top and buy in at the bottom.\u201d<\/p>\n Last week, superannuation research firm SuperRatings said it had already seen significant movement in share markets over the beginning of March, with super balances<\/a> estimated to sit below where they were at the start of February.<\/p>\n The median balance option is estimated to have fallen by 1.6 per cent over March, while the median growth option lost 2 per cent over the same period.<\/p>\n On Friday, it was revealed that more than 6 per cent had been wiped from the combined value of Australia\u2019s 500 largest listed companies since the Middle East conflict erupted, wiping more than $200 billion from its combined $3 trillion market cap.<\/p>\n \u201cWhile we have yet to fully see how returns will respond, it is worth remembering that when markets are more turbulent, the focus should be on long-term strategy and outcomes to ensure you reach your retirement goals,\u201d SuperRatings director Kirby Rappell said.<\/p>\n \u201cFor any members that are concerned about their fund\u2019s performance it may be helpful to seek advice before making a decision.\u201d<\/p>\n Super funds will often offer advice, or you can seek professional advice.<\/p>\n Get the latest Yahoo Finance news – follow us on <\/strong>Facebook<\/strong><\/a>, <\/strong>LinkedIn<\/strong><\/a> and <\/strong>Instagram<\/strong><\/a>.<\/strong><\/p>\n