2020 is the worst year for dividends since the GFC, with global dividends expected to fall by almost 20 per cent. Has your superannuation balance been impacted because of this?
Benefits of taking a globally diversified approach to your superannuation has proven to be a saviour for retiree’s and pre-retirees. Some superannuation returns were just deferred, while other returns were just non-existent. Some of those that have been deferred will be paid in full, some will be paid but at a reduced level, and others will be cancelled outright.
Does your retirement plan consist of you relying on your superannuation returns to fund your retirement? Is your superannuation diversified enough to prevent events like COVID-19 having a minimal impact so you can still pay for your groceries each week?
The impact of COVID-19 means more dividend damage (superannuation return) is expected for Australia.
An easy way to minimise the losses due to events such as COVID-19 is diversifying your superannuation. Some common options people choose to reduce risk of the share market is to invest into property, through a Self-Managed Super Fund Strategy, or taking advantage of an actively managed account.
If you’d like to know more, please don’t hesitate to contact us at FAA Group.