Your super is an investment, which involves both risk and return.

It is invested in various asset classes, which is determined by the chosen or default investment option applicable to you. The mix of asset classes you will be exposed to depends on your investment options and the level of risk you’re willing to take.

What is investment risk?

Investment risk refers to the level of volatility or fluctuation in investment returns you’re prepared to accept, including the potential loss of some of your capital (initial investment amount). For example, risk can mean that:

1. your investments might decrease in value due to a drop in market value
2. your capital doesn’t grow enough to keep pace with inflation
3. you won’t have enough money to draw a reasonable income when you retire or during retirement.

Your age, current financial situation and length of time to (or in) retirement could all be factors which influence your risk profile. 

What is diversification?

Simply put, diversification refers to spreading your eggs (money) into many different baskets (e.g. asset classes). It enables you to balance risk and return, so you have a better chance of protecting your money from a fall in value and reducing the risk of low or negative returns.

Most of our investment options are spread over a range of asset classes and industry sectors. This is called diversification.

What is an investment time frame?

Usually, your age and proximity to retirement will determine whether you’re investing for the:

• short term (1 to 3 years)
• medium term (3 to 7 years)
• long term (more than 7 years)

Investment markets move up and down over time as will the value of your investment. Depending on your expected years in retirement, you may be prepared to take on more risk in your investment portfolio because you have some time to ride out any short-term fluctuations in investment returns and benefit from the higher potential returns offered by growth investments such as equities (shares). Even if you have relatively fewer years to invest, you may still be prepared to take on more risk in your investment portfolio.

Never made an investment choice?

If you start a Health Super pension you will need to make an investment choice. If you didn’t make an investment choice, that’s OK. We still looked after you by investing your super in our Lifecycle strategy. If you are aged 60 or more and haven’t made an investment choice, you are invested in the Balanced option. If you would like to change your investment option, all you need to do is download the Change my investment option form.

Don’t know what to do with your super in retirement?

You should seek the advice of a qualified financial planner like Health Super Financial Planning who can help identify an investment strategy that best suits your situation and retirement planning goals.

Health Super Financial Services Pty Ltd (trading as Health Super Financial Planning) ABN 37 096 452 318, AFSL No. 240019 is a wholly owned subsidiary of Health Super Pty Ltd (the Trustee of Health Super). Health Super Pty Ltd pays Health Super Financial Planning (HSFP) half of the annual 1% account keeping fee charged for Health Super’s Pension products. Health Super Pty Ltd also pays a variable monthly amount to HSFP to conduct member seminars. Health Super is not a representative of HSFP and receives no commission when making a referral to this service.