The COVID-19 outbreak is having a major impact on the world, making life unpredictable and difficult at the moment. So we understand if you’re worried when looking at your super balance.
Fluctuations are a normal part of investments, like your super. And they’re even more volatile in times of uncertainty, like now.
Switching your investment to something with a lower risk profile when markets are falling sounds tempting, but you should know there are pros and cons in doing so, depending on how much risk you’re willing to take and your financial situation.
For example, Sharon Superrific (liked what we did there?) might be thinking about investing in something less risky right now, she risks selling at a time when prices are low, and may miss out on potential gains if markets recover. It’s important to consider that often market falls can be followed by a period of positive returns.
We can’t give you any suggestions, recommendations or advise you on whether it’s a good or bad time to make a change in the current market. We can tell you that it’s worth talking to a qualified financial adviser to get the right advice for you.
Once you have had a look and decided (ideally with some help from your financial adviser) on what’s appropriate for you, you can make the necessary changes.
Remember the old saying: you only make a loss when you sell. So:
- Take a breath;
- Check out your current investment allocations held within your super;
- Assess your needs, objectives, requirements and circumstances and see how it works with your super strategy;
- Understand the risks associated with continuing with your current investments and risks if you make changes; and
- Consider all your options before making any decisions. You may want to get advice from a qualified financial adviser
What if I need to access my super early?
To help ease immediate financial pressures, the Australian government has announced temporary changes to superannuation. From 20 April 2020, eligible individuals can apply to access up to $20,000 of their super tax-free, $10,000 this financial year and then within the first three months after 1 July 2020 another $10,000 for the next financial year.
Information about accessing an early release of superannuation due to the impact of COVID-19 on your employment and/or income including eligibility criteria, can be accessed here.
In addition, to be eligible for an early release of super due to Severe Financial Hardship, you’ll need to have been on Centrelink benefits for 26 weeks unless you are already over your ‘preservation age’ (can be between 55 and 60 depending on your date of birth). For Living Super customers, you can find more information on page 7 of the Living Super Product Guide located here.
If I am retired, what are the changes to the Minimum Pension Payment Amounts?
The Australian government has reduced the percentage on the minimum pension payments that retirees must withdraw from their superannuation accounts, by 50%, for the financial years 2019-2020 and 2020-2021. This reduction will assist retirees who do not wish to sell investment assets held within their superannuation to meet the usual minimum pension withdraw amounts as they can now elect to withdraw the new lower minimum pension payment amount. This change applies to retirees who hold Pensions and Transition to Retirement accounts. For full details visit this ATO link.
Help’s at hand – Rest assured, you’re not alone.
- Getting personal financial advice from an expert. If you’re thinking about changing your super arrangements, we encourage you to speak to a qualified financial adviser first. We can help put you in touch with Link Advice (our partner provider) or you can find one through the Financial Planning Association at fpa.com.au
- Living Super customers
- For general questions. If you have any questions or want general advice about Living Super, our super team here to help. Simply call 133 464, 8am-8pm, Mon-Fri (AEST/AEDT) or login to ing.com.au and use the Message tab on the left and we’ll get back to you. You can also check out some of the most commonly asked questions about super here.
- One off single issue advice rebated. Remember, we will pay the cost of your first single issue advice that you obtain from Link Advice in respect to your Living Super account. Valued at $395, it includes a 30-minute fact-finding phone consultation with Link Advice and a Statement of Advice by a qualified Link Advice Money Coach. For more information about the single issue advice rebate offer and/or to book, call us on 133 464.
Products (other than Living Super) are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823.
Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153, RSE L0000635 is the Trustee of the ING Superannuation Fund ABN 13 355 603 448 (Fund) and the issuer of interests in the Fund. ING Living Super is a product issued out of the Fund. ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL 229823, is the Promoter of the Fund. You should consider the Product Disclosure Statement and Financial Services Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, the product. Any advice does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you.
Living Super is not available for U.S. Persons (i.e. persons with U.S. residential, postal or fiscal address, phone number, citizenship, Green Card or any U.S. related proxy).
Financial advice is provided by Link Advice Pty Ltd ABN 36 105 811 836, AFSL 258145.
The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.