News and Views

Super and Women
Investment returns

Super and Women

Women are continuing to retire with less superannuation than men. Lower average salaries than men and a period out of the workforce to raise children both contribute to this issue. This is not something that is easily fixed, but a greater awareness of the importance of looking after and contributing to your superannuation might help.

Some strategies to boost your super are:

find and consolidate your super into one account
take an interest in how your super is invested (it's your money!)
make sure you are not paying more fees than necessary
salary sacrifice - even just 2% more can make a big difference over the long term
ask your spouse to split their super contributions with you if you are out of the workforce raising the family
see if you can access the Government Co-Contribution
if you are self employed and not receiving the Super Guarantee Contribution from an employer - consider making regular personal concessional (tax deductible) contributions.

Please talk to us if you would like to assess the value of any of these strategies for you.

Investment Returns Update

Sector returns to 31st December 2021
	1 year	3 Yrs, pa	5 Yrs,pa
Australian shares	18%	14%	10%
Global shares ($A hedged)	24%	21%	14%
Global shares ($A unhedged)	30%	21%	15%
Emerging markets ($A unhedged)	3%	10%	10%
Australian listed property	27%	13%	10%
Global Infrastructure ($A hedged)	19%	12%	10%
Australian fixed interest	-3%	3%	3%
Global fixed interest	-2%	3%	3%
Cash (Bank Bill Index)	0%	1%	1%

Thanks to the hope offered by covid vaccines and ongoing monetary and fiscal stimulus from Governments around the world, 2021 turned out to be a great year for investment returns to diversified portfolios. Australian shares returned 19% and balanced and growth portfolios delivered double digit returns.

Share market returns in the first half of 2021 were much stronger than the second half as concerns about inflation and increasing interest rates emerged later in the year as well as the surge of covid infections due to the Delta variant. Over the past 6 months, US inflation has sharply increased due to supply shortages as well as a surge in demand post lockdowns last year. US CPI is currently at 6.8% year on year, the highest it has been since the 1980’s. The US Federal Reserve has now conceded that it will be reducing monetary stimulus this year by first reducing quantitative easing. They are expected to then begin increasing interest rates as early as March this year.

With high share valuations for many US stocks, interest rate rises looming and another wave of Covid infections, the outlook is not clear and that will result in a continuation of the volatility we're currently experiencing in share markets.