When faced with the different investment choices for your Super what do you do?

The governments MY Super option’s follow a lifecycle investment strategy, more risk when you are young and then more conservative as you get closer to retirement age.

Typical mix for a lifecycle investment strategy

Age Growth Defensive
Under 45 85% 15%
45-54 75% 25%
55-64 55% 45%
65 or older 40% 60%


Your funds will be further diversified in different assets in both the Growth and Defensive. This diversification helps to spread your risk of the poor performance of one asset lowering your return significantly.

Time is a benefit for the young, with the high and low returns evening out over the long term. You are unable to withdraw the funds until retirement, so your super can recover.

As you approach retirement your planning becomes more focused. You will know if you will have debt to repay, increased cost of health care, kids to help out and what income you will need to meet expenses in retirement.

A more defensive super fund will help to even out the short-term highs and lows, helping your funds last longer as you draw down on them in retirement.

The effect of having the wrong investment strategy for your investment timeframe could mean a large difference in the final result for your retirement, you need to check your investment diversity regularly, to make sure it is right for right now and your future.