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YOUR CHEAT CODE TO BETTER FINANCIAL DECISIONS
Protect Your Super: The Biggest Risks and How to Manage Them

Jan 31, 2025
5 Silent Threats to Your Super—and How to Protect It
Your super is the foundation of your financial future—but did you know there are silent threats that could derail your plans? Let’s uncover the biggest risks to your retirement savings and the steps you can take to safeguard your nest egg.
For many Australians, the thought of running out of money in retirement is a major source of anxiety. Without regular employer contributions, your retirement savings are more vulnerable to market shifts, rising costs, and unexpected expenses.
The good news? With the right strategies, you can protect your super and make it last. Let’s explore the biggest threats to your super and practical ways to keep your finances secure during retirement.
1. Inflation Risk: Protecting Your Purchasing Power
Inflation is one of the biggest dangers to your retirement savings. Even small price increases can erode your purchasing power over time, leaving you with less to cover essential expenses.
Tips to Manage Inflation Risk:
- Reassess your spending habits and cut back on non-essentials.
- Avoid panic-driven investment decisions in risky assets.
- Top up your super with extra contributions during your working years.
- Consider delaying retirement or supplementing your income with part-time work.
Pro Tip: Use the government’s MoneySmart Budget Planner to fine-tune your spending and stay ahead of inflation.
2. Market Downturns and Sequencing Risk
Market volatility is a reality of investing, but for retirees, downturns carry an added risk: sequencing risk. Drawing down on your super during a market dip can magnify losses and reduce the longevity of your savings.
Tips to Minimise Sequencing Risk:
- Avoid hasty decisions, like switching to overly conservative investments during a downturn.
- Time major purchases carefully to avoid withdrawing during market lows.
- Diversify your portfolio to spread risk across different asset classes.
- Review your super investment options to ensure they align with your risk tolerance.
3. Longevity Risk: Making Your Super Last
Australians are living longer, with retirement potentially lasting 30 years or more. This extended timeframe, coupled with inflation, means your super needs to stretch further than ever.
Tips to Avoid Outliving Your Savings:
- Make additional super contributions and claim tax benefits where possible.
- Delay retirement or return to part-time work to boost savings.
- Create a realistic retirement budget to identify potential cutbacks.
- Explore eligibility for government support, like the Age Pension.
Pro Tip: Use the Superannuation Retirement Calculator to estimate how far your savings will take you.
4. Medical Costs: Planning for the Unexpected
As you age, medical expenses can quickly add up, from regular GP visits to unexpected surgeries or aged care. Without planning, these costs can significantly impact your savings.
Tips to Manage Medical Costs:
- Focus on prevention with regular health checkups and screenings.
- Maintain an emergency fund specifically for medical expenses.
- Use tools like the Medical Costs Finder to estimate out-of-pocket expenses for procedures.
5. Scams: Protecting Your Hard-Earned Wealth
Retirees are prime targets for scammers, who use tactics like impersonation and urgency to trick people into parting with their money.
Tips to Stay Safe from Scams:
- Be cautious of messages that pressure you to act quickly, even if they appear to be from trusted institutions.
- Avoid unsolicited offers, especially for investments or early access to your super.
- Verify suspicious communications by contacting organisations directly through their official websites.
Pro Tip: Educate yourself with resources from the Australian Cyber Security Centre to stay updated on common scam tactics.
Final Thoughts: Take Charge of Your Retirement Security
Retirement should be a time to enjoy the rewards of your hard work—not to worry about financial risks. By understanding and addressing inflation, market volatility, longevity, medical costs, and scams, you can create a plan to safeguard your super and secure your financial future.
Want to dive deeper into your retirement strategy? Download our free Sumo Life Operating System Dashboard and take control of your finances today.