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Sherry warns on consequences of super switching
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| Nick Sherry
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The Minister for Superannuation and Corporate Law, Senator Nick Sherry, has warned superannuation fund members that they risk not only short-term losses but also tax consequences if they move to switch to more conservative investment settings in the current market downturn.
Addressing a Global Pensions Conference in Sydney, Sherry said it was vital that superannuation fund members understood the long-term focus of superannuation as an investment vehicle.
What is more, the minister said those people considering changing their investment options in the current climate should seek the advice of a planner.
“Switching to conservative investment options or deposit products could result in short-term losses, and there may be tax consequences,” he said. “As well, adopting such a strategy would mean that members are not in the market to experience the gains when the market recovers.
“So, I would encourage superannuants to seek professional financial advice before they make decisions about their situation,” Sherry said.
AUTHOR
Mike Taylor
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