Switching cash option

What you need to know before switching

While investing in our Cash investment option might feel safe, did you know it could also put your retirement goals at risk?

It’s hard to escape the headlines. We’re given daily reminders about high interest rates, inflation, and many other issues around the world. There’s a lot to unpack, and it’s understandable if you feel anxious about your super account balance.

There’s danger in playing it safe

The Cash option can be appealing because it’s very unlikely to deliver negative returns. But on the other hand, it isn’t expected to generate high returns over the long term. These missed potential returns can add up over time.

Could switching impact your retirement?

Super members example

Here are three members who made different choices during the Global Financial Crisis:

Amina stayed in the Growth (MySuper) option
Wei switched to our Conservative option
Sally switched to our Cash option

Compare stories: switching a $100,000 balance out of Growth (MySuper)^*

History shows that markets bounce back

Amina ended up over $200,000^* better off than Sally (in the Cash option) by staying in the Growth (MySuper) option.

Before you change how you invest your super, it’s important to understand:

the range of investment options available
your investment time frame, and
the impact of changing investment options.

Our Advice team is here to help you work through your options and answer your questions about investments.

^*These figures are for illustration purposes only and the calculations are based on historical crediting rates from 30 June 2008 to 30 June 2024, switching on 31 March 2009 with a super account balance of $100,000. The Cash return reflects the historical crediting rates of the Cash investment option from 1 April 2009. Prior to this date, the historical performance of the Capital Guaranteed Option has been used for illustration purposes. The crediting rate is based on the return minus investment fees, taxes, and until 31 January 2020, the percentage-based administration fee. Excludes fees and costs deducted directly from members’ accounts. Past performance is not a reliable indicator of future performance.

Retirement members example

Here are the returns of our Cash option versus our default Conservative Growth option. As you can see, the Conservative Growth option’s returns have been significantly higher than the Cash option’s over the long term. However, the Cash option may still suit you if you want to avoid negative returns.

Compare our Cash and (default) Conservative Growth investment options^†

Before you change how you invest your super, it’s important to understand:

the range of investment options available
your investment time frame, and
the impact of changing investment options.

Our Advice team is here to help you work through your options and answer your questions about investments.

^†As at 31 December 2024. Investment performance is based on returns minus investment fees, taxes, and until 31 January 2020, the percentage-based administration fee. Excludes fees and costs that are deducted directly from members’ accounts. Past performance is not a reliable indicator of future performance.

What if I’m approaching retirement?

Investing in the Cash option may feel like the right decision if you’re close to, or in retirement. But even if you’ve stopped working, your savings are typically invested for at least another 20 years! You can still benefit from growth. Super is a long-term investment, and most members have time to ride out short-term market volatility.

It’s important to consider your investment timeframe and the potential long-term impact of switching when choosing an investment option.

Occasional negative returns are a normal part of financial markets

Because we know they’re bound to happen every once in a while, we invest your super across a wide range of assets. Our portfolios are well diversified and designed to meet their investment objectives over the long-term.