The average Australian retirement fund has already taken a hit following one of the worst stock market crashes since the Global Financial Crisis (GFC). The sharp decline comes in the wake of Donald Trump’s tariff war, which has reportedly wiped at least $100 billion from the Australian Securities Exchange (ASX), dragging superannuation balances down with it.
Economic futurist Evan Lucas warned that the market volatility, fueled by the Trump administration’s reciprocal tariff announcements, should already be reflected in superannuation balances. “It’s done something it’s only done three times in history – a decline of 10% or more in just two days,” Lucas said. He compared the drop to Black Monday in 1987, the GFC in 2008, and the COVID crash in March 2020.
While retirement funds naturally fluctuate over time, Lucas cautioned that the unpredictable nature of Trump’s trade policies may have caused a significant short-term blow to retirement savings. He advised Australians to check their super accounts, noting, “You’ll notice the difference.”
However, Lucas also urged Australians not to panic, reminding them that superannuation is a long-term investment. “If you look at history, the market will rally. Growth will return, and Donald Trump won’t last forever,” he said. He described the situation as “hour by hour” due to the volatility in Trump’s policy stance.
This week’s stock market turmoil, combined with a recent cyberattack on superannuation funds, has left Australian retirement savings more vulnerable than they’ve been since the early days of the pandemic.
Despite the gloom, Lucas remains cautiously optimistic: “It could bounce back just as hard as it’s gone down.”
Prime Minister Anthony Albanese also voiced concern, stating that the global trade shockwaves would likely affect Australian superannuation balances. “We’re seeing a negative impact on the stock market that affects Australians, because super funds are heavily invested in shares,” he said.
As of midday AEST, the ASX had recovered slightly from a massive $160 billion opening loss but was still down by $100 billion for the day. On Friday, the market had closed $56.6 billion lower, marking its largest single-day drop in eight months. The Australian Financial Review reported that up to $114 billion could be lost in a single day, raising fears of a potential U.S. recession.
