Don’t panic: Aussie superannuation funds urge calm as markets tumble over Trump’s tariffs

If you’ve been following the news recently, you’ve likely heard about the turbulence in global markets triggered by US President Donald Trump’s trade tariffs.

On April 7, 2025, Australian stocks saw a significant drop, with over $100 billion wiped off the market amid growing fears of a global recession. It was the worst daily result since the COVID-19 crash of May 2020.

In light of these developments, many Australians may be understandably concerned about how these market fluctuations could impact their superannuation balances.

Despite the recent volatility, superannuation funds are advising members to stay calm and resist the temptation to make hasty decisions.

The Super Members’ Council implored members to not move their money following a short-term market downturn and face missing out on a subsequent recovery in value.

Matthew Linden, SMC’s Executive General Manager of Strategy & Insights, explained the importance of maintaining a long-term view when it comes to super.

“Super is a long-term investment. We expect this week’s market falls will have little impact in 20 years – and beyond – when most of today’s super fund members will be starting to think about retiring,” he said.

For retirees and those nearing retirement, Linden also pointed out that money in superannuation has the time to recover from short-term losses.

“For current retirees or pre-retirees heading towards retirement soon, money that remains in super for many years enables short-term losses to be recouped,” he explained.

“It’s natural for everyone to want to understand the impact of any market falls on their super balance, but it’s also crucial to remember super is designed as a long-term investment.

“One risk can be when people move their money after a short-term market downturn – and then miss out on a recovery in value when markets cycle upwards again.”

Treasurer Jim Chalmers echoed Linden’s confidence, stating that Australia is uniquely placed to weather the economic storm caused by global trade tensions.

In good news for retirees, the impact of market volatility tends to be less significant for those who are already retired.

Retirees typically have more conservative investment strategies, with a higher proportion of bonds and less exposure to equities, so their super balances are usually less affected by short-term market fluctuations.

For those in their 30s to 50s, the recent market downturn might have a bigger impact on balances.

However, the good news is that markets have historically shown resilience, and past trends suggest that these short-term losses are likely to recover by the time many of these individuals reach retirement.

-with AAP.