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Understanding Why Your Super Fund Balance Fluctuates

Understanding why your super fund balance fluctuates is important for anyone who wants to have control over their retirement savings. There are a number of factors that can cause fluctuations in your super fund balance, and in this guide, we will explain some of the most common ones.

Investment performance

One of the biggest factors that can cause fluctuations in your super fund balance is investment performance. Super funds invest in a variety of assets such as stocks, bonds, and property, and the performance of these assets can vary over time. When the investments in your super fund perform well, your balance will increase, and when they perform poorly, your balance will decrease.


The amount of money you contribute to your super fund can also impact your balance. If you make regular contributions to your super fund, your balance will increase over time. However, if you reduce your contributions or stop contributing altogether, your balance will not grow as quickly, or may even decrease.

Fees and charges

All super funds charge fees and charges for managing your account, and these can also impact your balance. Some of the fees and charges you may be charged include administration fees, investment fees, and insurance premiums. If these fees are high, they can eat into your investment returns and cause your balance to decrease.

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Insurance claims

If you have insurance through your super fund, a claim on your insurance policy can also impact your balance. If you make a claim, your insurance premiums may increase, and your balance may decrease as a result.

Market volatility

Market volatility can also impact your super fund balance. Economic events, such as recessions or market crashes, can cause the value of your super fund investments to decrease. However, it is important to remember that market volatility is a normal part of investing and should not be a cause for panic.

In summary, there are a variety of factors that can cause fluctuations in your super fund balance, including investment performance, contributions, fees and charges, insurance claims, and market volatility. By understanding these factors, you can take steps to manage your super fund effectively and make the most of your retirement savings. To learn more contact us.

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