What the British vote to exit the EU means for your super

See what our Chief Investment Officer has to say about Brexit and the consequences for your super.

Oscar Fabian, VicSuper Chief Investment Officer

You're likely to have heard about the referendum that was held in the United Kingdom regarding leaving or staying in the European Union. The British people have now voted and the outcome was a majority voting to leave the EU bloc.

It’s important to remember that although the referendum result is known the timeline around when Britain will exit the EU is not. What is known is that the earliest the UK can exit the EU is 2018, two years after the outcome of the referendum. 


EU Referendum

As we have already seen, the leave vote has resulted in economic volatility for the UK, hitting liquid assets especially hard including the pound and British equities  – and that volatility has spread to world stock markets, including Australia. 

While we understand this uncertainty will be concerning to some of our members, especially those approaching or in retirement, there are some important factors to consider if you’re concerned about the current share market fluctuations:

  • Understand what switching between your investments may cost you;
  • Think about how long your super needs to be invested for – even if you’re retired;
  • Have a chat to us, we’ve got an experienced advice team that have talked to members through many market fluctuations. They can explain things simply and help give you the advice you need. Call us on 1300 366 216 or book an appointment online.
  • If you’re retired or thinking about retiring we have a solution that can provide a guaranteed income* to you – no matter what the market conditions – which can help reduce any worry when markets fluctuate.

Markets will always experience ups and downs; some larger and for longer periods than others. So it’s expected that while sometimes share values will fall, in other years they'll see healthy growth.

Speak to us before you switch

If you're concerned about the impact of this volatility on your retirement savings we recommend you contact us so we can help you understand the implications of switching your investments. 

For many, super may well be their second largest asset, so any decision you make is probably an important one and a considered opinion can help. The good news is that VicSuper offers super advice at no charge to members, in most cases. 

It's important to bear in mind that for many, super is a long-term investment (even if you've just retired, you're likely to need your super to last around 20 years). So it makes sense to look at investment returns over more than just a single year or few months. Switching your investment options right now may not be the smartest thing to do — and may well cost you money in the long run.

We’re well placed to see this through.

VicSuper has the experience and maturity to strategically manage volatility, with a focus on optimising your retirement savings and incomes over the long term. We manage volatility at the overall portfolio level by diversifying our assets as well as at the asset class level by investing a part of the portfolio in lower-volatility securities.  We stress test our portfolios to understand the impact of various (positive and negative) scenarios on returns.

For more information about how VicSuper manages financial market volatility in your investments click here to see a video from Chief Investment Officer Oscar Fabian. You can also see how your investment options performed in the latest Quarterly Investment Update. Past performance is not a reliable indicator of future performance.

If you’d like to chat to someone about your investment options, you can call our Member Centre on 1300 366 216 and speak to an adviser over the phone. Alternatively you can also book a face-to-face appointment with one of our qualified Financial Planners. We’re here to help.

or 

Call our Member Centre 

1300 366 216

Read more about Quantifying the Impact on Chasing Fund Performance by Vanguard Investments.

 


*Disclaimer: VicSuper relies on Challenger Life Company, under life policies issued to VicSuper by Challenger, to fund payments to members who select these products. VicSuper does not itself provide a guarantee



See what our Chief Investment Officer has to say about Brexit and the consequences for your super.

Oscar Fabian, VicSuper Chief Investment Officer

You're likely to have heard about the referendum that was held in the United Kingdom regarding leaving or staying in the European Union. The British people have now voted and the outcome was a majority voting to leave the EU bloc.

It’s important to remember that although the referendum result is known the timeline around when Britain will exit the EU is not. What is known is that the earliest the UK can exit the EU is 2018, two years after the outcome of the referendum. 


EU Referendum

As we have already seen, the leave vote has resulted in economic volatility for the UK, hitting liquid assets especially hard including the pound and British equities  – and that volatility has spread to world stock markets, including Australia. 

While we understand this uncertainty will be concerning to some of our members, especially those approaching or in retirement, there are some important factors to consider if you’re concerned about the current share market fluctuations:

  • Understand what switching between your investments may cost you;
  • Think about how long your super needs to be invested for – even if you’re retired;
  • Have a chat to us, we’ve got an experienced advice team that have talked to members through many market fluctuations. They can explain things simply and help give you the advice you need. Call us on 1300 366 216 or book an appointment online.
  • If you’re retired or thinking about retiring we have a solution that can provide a guaranteed income* to you – no matter what the market conditions – which can help reduce any worry when markets fluctuate.

Markets will always experience ups and downs; some larger and for longer periods than others. So it’s expected that while sometimes share values will fall, in other years they'll see healthy growth.

Speak to us before you switch

If you're concerned about the impact of this volatility on your retirement savings we recommend you contact us so we can help you understand the implications of switching your investments. 

For many, super may well be their second largest asset, so any decision you make is probably an important one and a considered opinion can help. The good news is that VicSuper offers super advice at no charge to members, in most cases. 

It's important to bear in mind that for many, super is a long-term investment (even if you've just retired, you're likely to need your super to last around 20 years). So it makes sense to look at investment returns over more than just a single year or few months. Switching your investment options right now may not be the smartest thing to do — and may well cost you money in the long run.

We’re well placed to see this through.

VicSuper has the experience and maturity to strategically manage volatility, with a focus on optimising your retirement savings and incomes over the long term. We manage volatility at the overall portfolio level by diversifying our assets as well as at the asset class level by investing a part of the portfolio in lower-volatility securities.  We stress test our portfolios to understand the impact of various (positive and negative) scenarios on returns.

For more information about how VicSuper manages financial market volatility in your investments click here to see a video from Chief Investment Officer Oscar Fabian. You can also see how your investment options performed in the latest Quarterly Investment Update. Past performance is not a reliable indicator of future performance.

If you’d like to chat to someone about your investment options, you can call our Member Centre on 1300 366 216 and speak to an adviser over the phone. Alternatively you can also book a face-to-face appointment with one of our qualified Financial Planners. We’re here to help.

or 

Call our Member Centre 

1300 366 216

Read more about Quantifying the Impact on Chasing Fund Performance by Vanguard Investments.

 


*Disclaimer: VicSuper relies on Challenger Life Company, under life policies issued to VicSuper by Challenger, to fund payments to members who select these products. VicSuper does not itself provide a guarantee