Struggling superannuation funds are performing at their lowest level since 2008 thanks to the continuing fallout from Eurozone debt problems.
The fall in valuation of superannuation funds of around 2% this year (calculated by Chant West) will be the second time in four years that pensions have made a loss, after a 21.5% fall in 2008.
Despite a 15.1% rise in 2009 and a 4.7% rise in 2010, the setback means that super funds have considerable catching up to do to maintain their real value and are falling well behind traditional savings accounts as the most secure form of investment.
The latest calculations are based on funds balanced across Australian and overseas equities. Chant West’s research found that retail pension schemes showed greater losses due to their increased exposure.
The investment research manager of Chant West, Mano Mohankumar, confirmed that market instability had affected superannuation funds, and saw little optimism for an improvement in 2012 as the eurozone debt crisis remains unresolved.
"We think the European situation will take longer to resolve than the markets hope it will", he noted.
With this in mind, it remains all the more important to be investing in dependable savings accounts. Why not visit Which4U's savings account listings today to see what rates are available?
Mark Hornby
