My parents are in their 60's. Dad works in mining. Getting close to retirement or so they thought.
The biggest superannuation fund is with MLC diversified and he salary sacrifices almost his entire pay and draw back from the super for living expenses (not sure what that facility is called). They have lost $485K from MLC super in the last 12 months. Mum thinks that's about 33%.
Here's what Choice reported in February:
The Association of Superannuation Funds of Australia stated in December that “it’s important members of funds stay in their current investment portfolio, so they can obtain the benefit when the value recovers”.
Frank Gayton, Head of IFFP, takes a different view. “I have no difficulty with clients switching to cash. Some people are saying the superannuation declines are only paper losses. No – they’re real losses – this is real money. If you’ve suffered a loss and are close to retirement, you should get advice about your situation pretty urgently.”
My opinion is that both perspectives have merit. However my folks are close to retirement.
Interested in opinions (not financial advice). What would you do if you were close to retirement in this financial climate?
Looking forward to your comments