Superannuation: The Sky Is Not Falling

Posted by Russ

August 3, 2008

With all the news over the past week on Superannuation you would be inclined to think that we should all run screaming down the street because our lives are pretty much over and we will be spending our retirement in one-room shanties eating dog food.

But one must realise that all investments, including Superannuation, are (or should be) about long-term growth. A striking statistic, and one that has all but alluded most of the main-stream media is the following:

One-Dollar invested six years ago was worth $1.70 this time last year, but is still worth $1.60 today.

People seem to forget too quickly that we have just come out of a very good period of growth that has put most super funds in good stead for the coming bear market.

So next time you see a news story on how much your Super has dropped try and remember that it isn’t at as bad as the media reports. With all invests you need to think long-term.

Do you know how much your superannuation has gained over the last 5-10 years?

Image credit: Welsh Boy