MORE THAN $100BILLION IS WIPED FROM AUSSIES' SUPERANNUATION ACCOUNTS: HERE'S WHAT YOU NEED TO DO
Australians have been urged not to panic after more than $100billion was wiped from retirement savings due to the conflict in the Middle East.
The S&P/ASX 200 tumbled 2.9 per cent on Monday in its worst session since the 2018 tariff shock, dragging super balances lower across all major funds.
Despite the turbulence, superannuation research houses urged members not to react emotionally or shift to cash, warning that locking in losses historically harms long‑term returns.
Chant West head of superannuation investment research Mano Mohankumar said markets had repeatedly demonstrated resilience during past periods of extreme uncertainty.
'Over the long term, superannuation funds have met their return and risk objectives,' he said.
'We don't have to go back that far to look at the key lessons. We can go back to early 2020 and Covid, there were huge falls but markets rebounded very quickly.
'In 2022, there was surging inflation and central banks responded by hiking interest rates, but again by 2023 we saw strong sharemarkets.
'Over the long term, sharemarkets go up.'
Vanguard Asia‑Pacific head of investment management Duncan Burns said the instinct to 'do something' during market turbulence was often counterproductive.
'But rather than reacting to short‑term market moves, Australians will generally be better served by staying focused on their long‑term goals and ensuring they're in a super investment option that matches their time horizon and risk appetite,' he said.
'The truth is great investors don't get clever, they get consistent.
'That sounds easy, but in reality, doing nothing is one of the hardest parts of investing, especially when your super balance dips and headlines scream panic.'
Market strategists warn the conflict's trajectory remains difficult to predict.
Initial expectations of a short‑lived confrontation have faded as hostilities continue across the region, injecting further uncertainty into energy markets and global risk sentiment.
There was a measure of relief on Tuesday as the Australian sharemarket rebounded, helped by easing oil prices after US President Donald Trump suggested the conflict could soon de‑escalate.
In a CBS interview, Mr Trump said the military operation against Iran was 'very far' ahead of its expected four to five-week timeframe.
'I think the war is very complete, pretty much,' Mr Trump said. 'They have no navy, no communications, no air force.'
Financial commentator Peter Switzer said the ultimate impact on super balances, inflation and the broader economy would depend on how long hostilities drag on.
The Australian sharemarket rebounded on Tuesday as oil prices retreated after US President Donald Trump signalled the Iran war could be ending soon.
He stated in a CBS interview the military operation was 'very far' ahead of its initial four to five-week timeframe.
'I think the war is very complete, pretty much,' he said. 'They have no navy, no communications, they've got no air force.'
Financial commentator Peter Switzer said the damage to our super, inflation rate and the overall economy from this war in Iran will hinge on how long hostilities last.
'President Trump says the war is nearly over, but he can exaggerate and the Iranian leadership is not an easy one to read,' he said.
'We should hope that Donald Trump is not gilding the lily and we will soon see the Iran leadership and the US President talking peace.
'The market and our super funds would love this.'
The Australian Retirement Trust, the country's second‑largest super fund with $300billion under management and more than 2million members, said shocks such as the September 11 terrorist attacks show geopolitical events often have only limited long‑term effects on diversified portfolios.
'History has long told us that selling growth assets such as shares after markets have fallen locks in losses and doesn't allow members to benefit from the inevitable market recovery,' a spokesman said.
Read more 2026-03-10T01:24:03Z