Why Your Super Dropped — and Why You Don’t Need to Panic
- Christine Lusher
- Apr 8
- 4 min read
"My super dropped $6,000 this week — what should I do?"
It’s a question we’ve been hearing a lot lately — especially during times of market volatility. Social media forums light up with posts from worried investors, and unfortunately, the advice being shared isn’t always accurate or helpful. So let’s take a step back and unpack what’s going on — and more importantly, what you should actually do if your super balance takes a dip.
First Things First: What is Superannuation Really?
Superannuation is a taxation structure designed to grow your wealth gradually throughout your working life. The money contributed to your super fund — by both you and your employer — is invested in a mix of assets such as shares, property, infrastructure, bonds and cash. The exact mix depends on your chosen investment option.
It’s important to remember: super is built for decades, not days.
Why Has Your Super Dropped?
The short answer? Market fluctuations.
If you’re invested in a "balanced" or "growth" option (as most people are by default), part of your super is invested in shares. When markets drop — whether due to economic news, interest rate changes, or shifts in investor sentiment — your super balance may dip too.
While a $6,000 drop can feel like a big hit, if your balance is $100,000, that’s a 6% movement — not at all unusual in a diversified portfolio.
Putting the “Loss” Into Perspective
Unless you’ve withdrawn your super or made a significant change to your investment option, these losses aren’t locked in — they’re what we call "paper losses".
Let’s say your super reached $120,000 earlier this year, and now it’s sitting at $114,000. It feels like you’ve lost $6,000 — but in reality, your portfolio simply experienced a temporary high. Markets rise and fall constantly, and over the long term, the trend has historically been upward.
Zoom Out: Focus on Long-Term Returns
Instead of zooming in on what happened last week, zoom out and look at what your super has done over the last 5 or 10 years.
Most super funds offer dashboards where you can view past performance. If you haven’t already, take a look at those longer-term figures — they’ll likely give you some much-needed perspective.
Spoiler alert: the longer the timeframe, the less scary those short-term drops feel.
Why This Feels So Stressful (Even If You Know Better)
If you’ve been feeling anxious or frustrated, you’re not alone — and you’re certainly not irrational. A few common psychological biases can make these market movements feel worse than they are:
Recency bias makes us focus on the most recent events (like this week’s dip), rather than the bigger picture.
Loss aversion means we feel the pain of a loss more intensely than the pleasure of a gain.
Being aware of these biases helps — and so does having a trusted financial planner who can help you avoid reactive decisions and stay focused on your long-term goals.
What Not to Do
Some common reactions might feel like the right move in the moment — but they can do more harm than good.
Don’t panic and switch to cash. Moving to a conservative option after a drop locks in your losses and removes any chance of benefiting from a recovery. Over time, your money may not even keep up with inflation.
Don’t assume you’ve been hacked. If your transactions and investments look normal, a drop in balance is likely market-related — not a security issue.
Don’t chase alternatives like gold or crypto. These asset classes come with their own risks. Crypto, for instance, is highly volatile. Gold doesn’t generate income. Neither are a reliable replacement for a well-diversified portfolio.
What To Do Instead
Check Your Investment Option. Log in to your super fund’s portal and review your investment allocation. Chances are, you’re already diversified across asset classes — shares, bonds, property, cash — which helps manage risk over time.
Understand That Volatility Is Normal
Ups and downs are a natural part of investing. The real power of super lies in staying invested through the cycles — not trying to time the market.
Review Contributions and Fees
While you're logged in, check:
Are your employer contributions being made regularly?
Are your fees competitive?
Can you boost your super through salary sacrifice or government co-contributions?
Small adjustments today can lead to significant benefits in retirement.
Speak to a Financial Planner. This is where we come in. If you're uncertain about your investment choice or whether you’re on track for retirement, now’s a great time to check in. A professional review can give you the clarity and confidence you need to stick with your strategy — or make a thoughtful change, if needed.
The Bottom Line: Stay the Course
It’s perfectly normal to feel rattled when markets dip and your super balance takes a hit. But reacting emotionally in these moments can lead to decisions that hurt your long-term financial health.
Super is one of the most powerful wealth-building tools we have — especially for women, who often face financial disadvantages like career breaks and longer life expectancy. Staying informed, avoiding panic, and investing with a clear strategy can make all the difference.
If you're unsure, overwhelmed, or just want a second opinion — we're here to help.
👉 Book a call or visit www.lushwealth.au to learn more.
What you need to know
This information is provided and produced by Lush Wealth. The advice provided is general advice and information only, as we did not consider your investment objectives, financial situation or particular needs in preparing it. Before making any financial decision based on this information, you should consider how appropriate the advice is to your particular investment needs and objectives. You should also consider the relevant Product Disclosure Statement before deciding on a financial product.
