1. How long do you want to invest for?
Your investment timeframe is how long you plan to invest your super savings before you retire, as well as how long you want your savings to last once you do retire.
Even if you don’t know when you'll retire, thinking about your investment timeframe can help you choose an option that matches your goals.
2. How hands-on do you want to be?
Choosing the right investment can impact how much your savings grow and how long they last. Before making your choice, you need to know how much direct control you want over your investments – or how 'hands-on' you want to be.
You can choose from three different investment options, each with a different hands-on level:
Prepared by AustralianSuper, based on information available as at 30 June 2023, sourced from the following market indices: Australian shares - S&P/ASX 200 Index; Cash - Bloomberg AusBond Bank Bill Index. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.
Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection herewith.
Our top five tips for managing risk
Mixing it up can help
Investing in a mix of investments (diversification) can help protect your investments against market ups and downs. Spreading your investments across a variety of companies, industries and regions in different asset classes can help reduce the risk of negative returns.
Diversification is particularly important to consider if you’re planning to build your own strategy with our DIY Mix options or invest your own super using Member Direct. Our PreMixed options are already diversified and each option has a different mix of assets.
Focus on your long-term needs
Watching your super balance go up and down can be unsettling. While it can be tempting to change investment options when markets are down, it isn’t always the best approach. Investments that are volatile over short periods of time may have the potential to grow more over longer periods.
It’s normal for markets to change
Most investments go up and down over time. Market movements can mean the asset allocation of your portfolio moves away from its original strategy and changes your risk level.
In our PreMixed options, we actively adjust the asset allocation so it reflects our strategy. If you invest in our DIY Mix options or Member Direct, you’ll have to manage this yourself.
Review your strategy
When your circumstances or objectives change, it’s a good idea to review your strategy to ensure it’s still right for you. For example, you might be nearing retirement and need to access some of your super in the short term.
Consider seeking financial advice
The best option is the one that suits your investment timeframe, circumstances and goals. A professional financial adviser can help you develop an investment strategy to meet your needs, which could make a big difference to your retirement savings over the long-term.