What Happens When My Super Goes Down?

What Happens When My Super Goes Down? Why Volatility Isn’t Always a Bad Thing

Imagine your superannuation like a big piggy bank that grows over time. Every time you go to work, some of your pay goes in — and that money is invested in things like shares, property, and infrastructure.

Sometimes your super’s value goes up. Other times it drops. That’s called volatility. It can feel scary, but it’s normal — and sometimes it can actually work in your favour.

Why did my super drop?

Markets are like rollercoasters. They go up and down for reasons like:

  • Big news events

  • Interest rate changes

  • Inflation

  • Elections or international issues

Your super dips when the things it’s invested in temporarily lose value. It happens to everyone.

Will my super recover?

Most likely — yes. Over the long run, share markets have historically gone up about 10% a year on average.

But here’s the key: they never go up in a straight line. It’s normal to see:

  • 3 small dips (5%) a year

  • 1 medium dip (10%) a year

  • A bigger dip (15–20%) every few years

If you stay invested and don’t panic, your super usually recovers and grows stronger.

But here’s the good news...

If your super balance drops at 30 June (the day the government checks your “Total Super Balance”), you might actually unlock new financial opportunities for the year ahead:

✅ You could be allowed to contribute more into super.

✅ You may catch up on contributions you missed.

✅ You might become eligible for government co-contributions or tax offsets.

✅ If you have a self-managed fund, you could access strategies to reduce tax.

Sometimes, a drop in your super is the open door to a smarter strategy.

Real example: Amy’s opportunity

Amy was on maternity leave and her contributions were low. When her balance dipped below $500,000, she qualified to make extra contributions the next year and saved thousands in tax.

Smart timing — made possible by market movement.

What about the tax-free part of my super?

Your super is made up of two parts:

  • Tax-free (usually after-tax contributions or special caps)

  • Taxable (everything else)

Volatility isn’t always bad

🔹 It’s uncomfortable, but it’s normal

🔹 It often unlocks better strategies

🔹 It might save you tax

🔹 And it usually recovers

Don’t panic. Don’t pause. Plan.

What should I do?

If you’re worried about your super:

  • Don’t check it every day — that just creates stress

  • Don’t make decisions based on fear

  • Talk to a professional before you act

There may be hidden wins in a down market — if you know where to look.

Need help?

We help clients make the most of their super in all markets — up, down, or sideways.

📞 Book a time with us. We’ll show you how your current super balance can still unlock opportunity.

Newcastle Advisors – Turning volatility into advantage for your retirement.

Matthew McCabe