Super fund returns set to fall amid rising inflation and interest rates

While the reaction to war in Ukraine, inflation and interest rates will affect super, experts say savers have done well in recent times despite global disruption. Photograph: David Gray/Reuters

The retirement savings of many Australian workers will fall this financial year due to stock market tumbles driven by fears of economic weakness from the war in Ukraine and soaring interest rates and inflation.

While Australia’s economy grew by 3.7% in the year to March, the share market paints a gloomier picture, with Australia’s benchmark share index, the ASX200, down 5.7% so far this year, cutting into retirement returns.