Super is a long-term investment

The cyclic nature of the investment market can make it both unstable and unpredictable. 

Pair this with the fact that you’ll need super for as long as you live and it’s clear that changing your options should always be considered carefully.

We have developed an investment strategy that seeks to balance both risk and return to maximise the long-term returns of your super and offset market volatility.

The strategy works on the principle that certain investments (i.e. shares) generally experience greater volatility in the short term when compared to assets like government bonds. However, they’re also more likely to achieve better returns over the long term.

Watch our Head of investments, Leigh Gavin, explain how we seek to build a robust portfolio to withstand short-to-medium-term market volatility.

The chart below demonstrates the value in maintaining a steady long-term investment focus. 

Investment comparison
Starting income $50,000, annually increased by 3%, 9%^ super contributions and starting account balance of $50,000

Our MySuper Balanced (default) option is where the majority of our members have their super invested. 

Members that kept their super invested in our default option for the last 15 years (despite the Global Financial Crisis in 2008/9) found themselves in a substantially better position financially than those that switched to the more conservative Cash option.

Those same members who, in 2004 invested $50,000 in our MySuper Balanced option found themselves over $90,000 better off by 2017 than the members who invested the same amount in Cash. A difference of more than 47%.

It’s a simple illustration of how, when viewed across the long term, the MySuper Balanced option has provided superior returns for members while producing an average annual return of 9.60%* since our inception (1978 to 2019).

If you have any questions or would like to discuss your investments with a LUCRF Super financial adviser, please email or call us on 1300 130 780. Expert advice is available at no extra cost for LUCRF Super members.

^Currently 9.5%
*Past performance is not a reliable indicator of future investment performance.