For many Australians, superannuation is the nest egg we rely on to fund our golden years. We work hard, make regular contributions, and trust that by the time we’re ready to retire, our super will be there to support us.
But what happens when global events beyond our control send shockwaves through the market, wiping out tens of thousands of dollars in the blink of an eye?
That’s exactly what happened to Peter Jarratt, 69, who woke up to find nearly $50,000 missing from his super and investment accounts—almost overnight. ‘I saw close to $50,000 vanish almost overnight from super and investments,’ Peter said. ‘Thanks to Trump, I’m facing another year of work to replace what has been lost.’
How did this happen? The culprit: a sudden announcement of reciprocal tariffs by former US President Donald Trump, which sent global stock markets into a tailspin. Although the tariffs are currently on a 90-day pause, the initial panic was enough to cause significant losses for many Australians, especially those close to retirement.
It’s easy to feel like international politics is a world away, but as Peter’s story shows, decisions made in Washington or Beijing can have a direct impact on your retirement savings here in Australia. When Trump’s tariffs were announced, markets reacted with fear, leading to a sharp drop in the value of shares and superannuation funds. For those with a significant portion of their super invested in shares, the impact was immediate and painful.
Superannuation consultant firm Chant West reported that the median super balanced option in Australia fell 1.9 per cent in March, with a further two per cent drop expected in April. For the average Australian nearing retirement, that could mean starting the year with $13,000 more than you’ll finish with—simply due to market volatility.
For Peter, who is from Brisbane and has worked as a fleet manager for 15 years, the timing couldn’t have been worse. He was looking forward to retiring at the end of 2025, but now he’s not so sure. ‘It just seems to be so volatile and there’s no end to the madness,’ he said.
Even though his investments and super have recovered about 50 per cent from their initial fall, he’s worried they won’t bounce back completely by the end of the year. As a result, he’s resigned to the fact that his retirement will likely be delayed by at least six months.
If you’re still a few years away from retirement, financial experts say there’s no need to panic. Terry Vogiatzis from Omura Wealth Advisors points out that most super funds are diversified, meaning they hold a mix of different asset classes—shares, property, bonds, and cash—which can help cushion the blow during market downturns. ‘Volatility and the market downturn don’t last forever,’ he says.
In fact, for younger Australians, a market dip can even be an opportunity. ‘Would you rather a market downturn on $300,000 when you’re 45, or would you rather that same drawdown happen on a $1 million when you’re 65?’ Terry asks. The idea is that younger investors have more time to ride out the ups and downs of the market and can even benefit from buying more assets at lower prices.
While markets have shown signs of bouncing back since the so-called ‘Liberation Day’ tariffs were announced, not everyone is convinced the worst is over. Michael McCarthy, CEO of Moomoo Australia, warns that the current rally may be driven more by optimism than by solid economic fundamentals. ‘Strong remarks from China’s President Xi Jinping, doubts from corporate America, and weakness in copper and oil markets, suggest the current rally is fuelled by optimism rather than fact,’ he says.
Peter’s story is a sobering reminder that even the best-laid retirement plans can be thrown off course by events beyond our control. While it’s natural to feel anxious when you see your super balance drop, remember that markets do recover—and that there are steps you can take to protect your nest egg.
Have you experienced a sudden drop in your super or investments? How do you manage the ups and downs of the market? Share your story in the comments below—your experience could help others in our community navigate these uncertain times.
Also read: Survey reveals widespread opposition to Dutton’s proposed super changes
