Voluntary super contributions ease

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Voluntary superannuation contributions have eased slightly after approaching record highs as super members appeared to take a breather after riding the bull market of recent years.

The latest data from superannuation research house SuperRatings reveals the average voluntary contribution over the course of the 2017 financial year was $1,054. This was a 10 percent decline on the prior year but just $158 per year less than the highest average contribution of $1,212 in the 2008 financial year and $260 higher than the eleven year average. Voluntary contributions more than halved in the years following the GFC but have slowly climbed since then.

Member contribution per active member

Source: SuperRatings

It remains to be seen how volatility throughout 2018 has affected member contributions but super balances remain well ahead over the course of the last decade despite recent fluctuations.

Data released by SuperRatings last week revealed that $100,000 invested in a Balanced Option in 2008 would be worth $193,751 as at the end of September 2018. This is a 9.7 percent annual return over the ten-year period. This return is despite the volatility of the first two weeks of October having cost members in a Balanced Option $2,700, while those 100 percent exposed to Australian shares have experienced a decline of around $4,800 for the same period.

Best and worst performing options over 10 years to 30 September 2018*

Source: SuperRatings *Interim results only

The latest data comes just a week before the annual SuperRatings Day of Confrontation, which brings together leaders from the superannuation industry along with policy makers and regulators to discuss trends across the sector.

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