Australians are being warned about the long-term impact of panicking with their superannuation with some facing potential losses of $57,000.

Volatile markets are driving some members to switch from balanced options — which includes shares — to cash according to AustralianSuper.

Global share markets have experienced sharp swings in recent months owing to the fallout of Donald Trump’s Liberation Day tariffs, geopolitical tensions and fears of stock markets being overvalued.

“Over the past month, we’ve seen members switching their super into our cash option at around four times the usual rate,” head of assets allocation at AustralianSuper Alistair Barker said.

As Australians react to short term market movements, they are neglecting to think of to the potential downside their actions have on their retirement savings.

According to AustralianSuper, a member who moved $100,000 from a balanced option to cash in April 2025 would have found themselves $8,000 worse off just three months later compared to those who stayed the course.

This switch can slash retirement funds by anywhere from $26,000 to $57,000 over 30 years.

Mr Barker said that when Australians move into cash they “lock in” their loss and “miss out on the bounce back” when the market recovers.

This is because a super fund is a long-term investment “designed to weather market volatility” as it’s powered by “compounding interest”.

A balanced superannuation option is a diversified portfolio for your money to grow, where wealth is spread across growth assets like shares and property, and defensive assets such as cash and fixed interest.

On the other hand, a cash option prioritises capital preservation over aggressive growth.

Rather than chasing high returns, wealth is anchored into stable assets like cash deposits, term deposits, and short term money market securities.

This offers a shield when markets become turbulent.

Mr Barker added: “The key thing to remember is that market ups and downs are a normal part of investing, and even if it makes you feel uneasy and tempted to make a reactive decision, super is a long-term investment and staying focused on the long-term has generally led to better outcomes.”