While the coronavirus has been causing Australia’s economy to take a recessive turn due to reduced cash flow, there is still no reason to panic about your superannuation investments just yet.

However, if you are a middle-aged worker or a soon-to-be retiree, reviewing your superannuation investment strategy may prove helpful for other future unexpected economic problems. Here are some suggestions on how you can manage your super with a minimised risk strategy:

Build a cash buffer:
Cash will always be a conservative option when it comes to super allocation. For those approaching retirement, investing in cash is a low-return but also a low-risk strategy to protect your savings. Not only should middle-aged workers work towards investing their super funds in cash, but they should also build a physical cash buffer and save on the side without contributing the extra money into super funds. This way, in the off chance that something does go terribly wrong with your super funds, at least you have a cash buffer to help you out.

Financial planner/personal accountant:
If you can spare some extra money to do so, hiring a personal accountant or financial planner will always benefit you in the long run. Unlike super funds which invest your money into outlets deemed profitable by the company itself, a financial planner will help you invest your money into avenues that you personally prefer. While this may mean converting into a self-managed super fund, having sole control of your super funds is never a bad idea.

Pay attention to super fees:
The one thing that you as a super fund holder can choose is the fees you wish to pay a super fund for managing your super. Do your research before committing or switching to a super fund and focus on the fundamentals, such as fees. High fees will obviously negatively impact your retirement savings and while rates may increase at a seemingly minuscule rate, they will add up by the time you can take out your super. Always choose a super fund which is most aligned with your personal values and monetary goals and do adequate market research beforehand.