SUPERANNUATION funds took another major hit this week as plunging share markets wiped almost $2000 from the average account. Since the start of the financial year, the average superannuation account has lost $6500 for every $100,000 in it, according to research company SuperRatings.
After another roller-coaster ride on the Australian share market, which has lost more than $60 billion this week, nervous super investors will be focused on the International Monetary Fund, which meets this weekend.
Jittery Australian investors rallied yesterday after heavy falls on Wall Street, with the All Ordinaries falling only 1.6 per cent to 3978 points - compared with falls of between 3.5 and 5 per cent in Europe and America.
And the Australian dollar recovered some ground to be trading at US98c - though it is still way down on its record high of $US1.10 on August 1.
But the market is demanding more action from political leaders and central banks to stop panic as concerns grow that the US is heading for a double-dip recession, China is weakening, and Greece may default next week.
Prime Minister Julia Gillard yesterday urged Australians not to be spooked by the turmoil.
She said Australia was the envy of the world, with a strong, resilient economy.
"The fundamentals of the Australian economy are strong - low unemployment, low public debt, a strong banking system, growth, employment prospects, record terms of trade, hundreds of billions of dollars in the investment pipeline," she said.
Ms Gillard is one of seven world leaders who signed a joint letter calling on European leaders to resolve their debt crisis.
SuperRatings analyst Nathan McPhee said the renewed turmoil had doubled super losses in the past three weeks.
At the end of August, SuperRatings reported a 3.1 per cent loss for "balanced" funds so far this financial year. Yesterday, however, the firm estimated the loss had climbed to almost 6.5 per cent for a balanced option fund.
"Basically, it's still just a case of staying the course and don't try and time the market. For anyone thinking about retiring soon, they should get financial advice before making any decisions," Mr McPhee said.
heraldsun.com.au
From a financial perspective, one of the worst performing places where people can put their money into is super funds.
The monies put in by the public go into benefiting the financial institutions and NOT the (mums and dads) investors.
Yest still the government forces the Australian public to put in a fixed amount from their slalary into super.
The excuse given is that so you will have 'something' when you retire.
The 'something' will be just enough for you to live on for 6 months whereas the institutions have made many time more profits.
Another scam supported by the government.
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