The right advice for your superannuation and financial position
March 30, 2020
The impacts on your superannuation
The share market continues to display volatility at this time, resulting in an indeterminate final impact of the Coronavirus pandemic. Although early days, it is widely accepted that COVID-19 will have real and lasting impacts on people’s health, wellbeing and their finances. The share market is experiencing large daily swings affecting virtually every sector, which directly impacts on your superannuation.
Schroder’s recently released the table below, highlighting the US stock markets ten worst days and their subsequent rebounds. While it may seem as though there is no end in sight, markets will recover, as history has shown time and again. The question becomes when not if.
Superannuation is a long-term investment. Undoubtedly there are a vast many worried not only about job security, but also how your super has been performing under this pressure. This will depend on a number of aspects including where and how your money is invested, your attitude towards risk and how close you are to retirement. There are however, steps you can take to mitigate, manage and protect your super and investments.
- Focus on the long-term;
- Review your risk level;
- Review your portfolio;
- Diversify investments; and
- Invest small amounts on a regular basis.
Accessing your superannuation
The Australian Government has recently announced measures to allow limited access to superannuation funds for those that have been adversely affected by Coronavirus.
Those who are experiencing financial distress as a result of COVID-19 and meet the eligibility criteria will be able to access up to $10,000 before 30 June 2020 and an additional $10,000 from 1 July for approximately three months (depending on the timing of legislation)
- To be eligible, you must meet one of the following conditions:
- you’re unemployed;
- you’re eligible to receive Jobseeker Payment, Youth Allowance (jobseekers), Parenting Payment, Special Benefit or Farm Household Allowance; or
- on or after 1 January 2020, you were;
- made redundant;
- your hours of work reduced by at least 20%; or
- if you’re a sole trader, your business was suspended or your turnover reduced by at least 20%.
Once meeting one of the above listed criteria you will be able to apply through the MyGov website for this access. Once the ATO confirms you’re eligible, they will issue you and your superfund with a determination and the payment will be made directly to you. If you have a self-managed superfund, arrangements will differ.
Payments will be tax-free and amounts received will not impact Centrelink or DVA entitlements. It is expected that claims can be made from mid-April.
How to plan your future
Whether you are concerned about your current investments, unsure of how to review your superfund, require assistance to evaluate your personal insurances or just need someone to speak with, Gow-Gates Financial Services can help. We have a dedicated and experienced team who specialise across wealth, investments, insurance, retirement planning, estate planning, insurances and mortgages.
Our focus at Gow-Gates is to filter through the noise and keep you focused on what is relevant to you.
If you’re unsure of your financial position, please reach out to our financial services team should you have any questions, we are always here to help.
Please review the ECONOMIC RESPONSE TO THE CORONAVIRUS provided by the Australian Government
BTax (Acc), MFin, DipFS (FP), Grad.Cert (FP), AFP®
Manager, Financial Services
T: 02 8267 9957
M: 0406 530 834
Business Account Executive
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F: 02 82679998