Comparing super? It pays to stay in your lane

This month we sat down with our Head of Investment Strategy, Michael McQueen, to get his thoughts on short-term performance results and why it pays to stick to your lane on the ‘Road to Retirement’.


So, Michael what are typical scenarios where a member might see their Fund’s current performance and panic? 

Generally, it’s a reaction to the media. There are two periods where results are released, mid-late January and mid-late July where ‘top performers’ are listed. Members, rightly so, react if their fund isn’t in that list.

Should members panic if they don’t see their fund in these lists? 

Absolutely not. Every fund is set up to manage the best interests of their members and their balances. For LUCRF Super, it’s our mission that our members retire with financial dignity. 

We’re working for your financial future. 

Sometimes we’re more defensive than other funds because we prefer not to take as much risk. The investment markets are going through a period of change now and there’s a lot of unpredictability. It’s our mantra to protect capital in these times rather than grow. For us, it’s better to grow a percentage or so less now, if it means safeguarding against a percentage decrease if things get worse in the future.

What about our members who are at, or are nearing retirement. Should they be worried?

Definitely not! There are generally three age brackets to consider. If you’re between 18-55 you’re probably in what we call the accumulation phase, if you’re 55-65 hopefully you’ve switched to a transitioning to retirement account (we call this TTR) and if you’re 65 and over, you’re in a pension account. Each of these stages should have different approaches to growing your balance. But I would encourage our members who are nearing retirement age to give our experienced advisers a call. Depending where you are in your bracket, it’s a great time to find out if your super is in the right option and to make sure you’re being taxed correctly. For example, if you’re retired you should be taxed at 0%.

Nearing retirement age? Get in touch with our financial advisers to help you plan.

What should our members do if they have the urge to ‘switch lanes’?

By default, you’re invested in the MySuper Balanced (or Balanced for pensioners) option which is common among most Australians. 

We’re proud to say our MySuper Balanced option has delivered results of  9.60% p.a* since inception. 

But if you want to see if you’re invested in the right option based on your risk appetite, then I’d certainly suggest speaking to one of our advisers. It’s part of your membership and is at no extra cost!

In your opinion – what’s the most confusing thing to understand about super?

Reacting to performance results and making what could be considered a logical decision may lead you to a lower account balance at retirement. Financial markets are not linear so it’s important not to have a knee jerk reaction. Our latest video, the ‘Road to Retirement’, illustrates a real-world example of how superannuation works. 
I’d encourage our members to watch our other videos on super and to speak to one of our advisers to understand more about your investment options. 

Watch our video 

*Past performance is not a reliable indicator of future performance.