Your Super Nest Egg
How much do Australians invest in super?
How much do Australians invest in super?At December 31 last year, Australians had $1147 billion invested in superannuation accounts. By March 31, the plunging stock market cut that to $1059 billion. That has probably fallen further, but figures are not yet available.How is most superannuation invested?Most Australians invest their money in their superfund's default option, providing a "balanced" investment profile. According to an Australian Prudential Regulation Authority report, equities still represent the majority of assets, with 31% held in Australian shares and 24% in international shares. Fixed-interest accounts represent about 18% of assets, property 10% and cash 8%.How much do they invest in the financial sector?These figures aren't collected but Pauline Vamos, chief executive of the Association of Superannuation Funds of Australia, estimates up to 10% is in the sector.Looking over the next 20 years, should you be worried?The short answer is no, says Ms Vamos. "Superannuation funds invest in a broad range of assets, and . while one asset is going down another asset is going up," she says. Jeff Bresnahan, of super fund tracker SuperRatings, says consumers need to understand they can't always have positive returns."Historically sharemarkets do bounce back. The question is when, and unfortunately it is a question no one can accurately answer."If you're planning to retire in five years, what should you do?It is important to get a retirement strategy in place. "Get some advice and look at the options for transition to retirement, like putting extra amounts in your super fund before retirement because of the enormous tax benefits you get post retirement," says Ms Vamos. "Also remember that you will be retired a long time so make sure your investment will last a long time." DANIELLA MILETIC and TIM COLEBATCH
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