Wren
Australians are being urged not to panic over recent market swings, with advisers warning that shifting superannuation into cash during a downturn can do long-term damage to retirement savings.
The warning comes as market volatility hit the ASX and global equities in early March 2026 amid conflict-driven oil-price spikes and wider economic uncertainty. Recent reports show the ASX 200 fell sharply while oil prices surged, adding to nerves among investors.
Why Experts Are Warning Against Switching to Cash
Financial adviser James Wrigley says switching to cash during a downturn is often one of the worst reactions investors can make because most people fail to time both the exit and the re-entry correctly.
Aware Super’s market-volatility guidance says switching after markets fall can lock in losses and leave members missing the rebound, while short-term volatility usually matters far less than long-term discipline.
That risk is not theoretical. According to figures cited from Aware Super modelling, Australians in a high-growth option who switched to cash during the COVID-19 downturn could now be $58,000 worse off for every $100,000 they had invested.
For people in a conservative balanced strategy, the loss could be as high as $113,000. A retiree who stayed in a conservative pension option instead of switching to cash could also be about $8,500 a year better off in retirement income.
What The Numbers Show
| Key Figure | Latest Detail |
|---|---|
| Potential loss from switching high-growth super to cash | $58,000 per $100,000 |
| Potential loss in conservative balanced strategy | $113,000 |
| Extra annual retirement income from staying invested in a conservative pension option | $8,500 |
| Aware Super High Growth 10-year return to 31 Dec 2025 | 9.27% p.a. |
| Aware Super High Growth asset mix target | 88% growth / 12% defensive |
Aware Super says its High Growth option targets 88% growth assets and 12% defensive assets, while its published performance shows a 9.27% annualised return over 10 years to 31 December 2025.
That reinforces the broader message that super is designed as a long-term investment, not something to trade in and out of based on headlines.
Who Should Be Most Careful?
The risk is different depending on life stage. People in their 30s and 40s still making regular contributions may actually benefit from downturns because new money buys assets at lower prices.
For Australians in their 60s, the focus should be on whether their investment mix already matches their stage of life, rather than making a sudden switch to cash. Wrigley’s advice is that people close to retirement in balanced or conservative options often do not need to do anything drastic.
Eligibility And Payment Dates
For this topic, “eligibility” mainly means when you can access your super. Under official guidance, you can generally access your super from age 60 if you retire or leave a job after turning 60, and from age 65 whether you are still working or not. Preservation age has now reached 60 for anyone born on or after 1 July 1964.
On “payment dates,” employers are currently required to pay compulsory super by quarterly deadlines, with the April–June quarter due by 28 July.
The Super Guarantee rate is already 12% from 1 July 2025, and from 1 July 2026 the new Payday Super system is due to begin, requiring super to be paid much closer to each payday.
What Aussies Should Do Now
The main takeaway is simple: avoid panic decisions. If you are worried, talk to your fund or a licensed adviser before changing your investment option.
History suggests that emotional switching during volatile periods can seriously erode retirement wealth, especially when markets later recover.
FAQs
How can Aussies lose $58,000 from their super?
By switching a high-growth super balance to cash during a downturn and missing the market rebound, based on Aware Super modelling.
When can I access my super in Australia?
Usually from age 60 if retired or after leaving a job post-60, and from 65 regardless of work status.
When do super payments change in 2026?
The major payment-timing change starts 1 July 2026, when Payday Super is scheduled to begin.