Kirby Rappell
2025 delivered another year of strong returns to superannuation members, with the median Balanced option finishing the year on a high note following a small stumble in November. The median Balanced option reported a 0.3% return in December, and 8.8% for the full 2025 calendar year, below last year’s 11.1%, but comfortably exceeding the long-term average of 6.5% p.a. since 2000.
The median Growth option also returned 0.3% in December and broke double digits with a 10.2% return over the year, while a smaller allocation to shares resulted in the median Capital Stable option returning 0.1% for the month and 6.2% across the year.
Pension members benefited from the tax concessions on their earnings, with the median pension Balanced option matching the 0.3% accumulation return in December but outperforming accumulation options over the year with a 9.8% return.
International shares continued to demonstrate their value over 2025 and were the only asset class to reach double digit returns for the year. Australian shares also contributed strongly to fund returns, although they fell just short of reaching double digits for the year, while property and infrastructure assets added a more modest mid-single digit return. Fixed interest and cash both delivered similar returns over the year, with the median options returning between 3.7%-4.0%.
Funds have done well in delivering strongly for members over the longer term. An investment of $100,000 in the median Balanced option 16 years ago would now be worth $304,911, while investing in the median Growth option would now be worth $337,878. Members who invested in Cash would have $146,378.
Raiz Super was the top performer in the SuperRatings Balanced (60-76) Index for the second consecutive year with its Moderately Aggressive option returning 12.4% over 2025. Small funds also proved they can deliver strong returns, with legalsuper taking out second and NGS Super taking out the third spot over the year with 11.3% and 11.2% returns respectively.
Younger members in MySuper options that use a lifecycle model continue to benefit from higher growth exposure, with all of the top 10 lifecycle options for members aged 45 and younger delivering double digit returns over the year, rewarding these members’ tolerance for the higher risk of volatile balances.
With lifecycle options delivering three consecutive years of above average performance members may be tempted to change their investment strategy in response. While there have been benefits to this design over the past few years it is worth considering the additional ups and downs higher growth exposure is likely to see over time and if this is suitable for your situation and risk appetite. We encourage any member considering a change to seek professional advice, either through their fund or a trusted adviser. However, remember to check if there will be a cost for doing so before going ahead.
Superannuation remains a long-term investment for most, with the majority of members looking at investing for decades before they access their superannuation in retirement. Strong, sustainable, long-term returns are key to setting up for a comfortable retirement with the top performing funds over 10 years listed below.
The Hostplus – Balanced option remains the top performer over the long-term, with an average return of 8.7% pa., closely followed by Australian Retirement Trust – Super Savings – Balanced with an average return of 8.5% pa. The Hostplus – Indexed Balanced option took out third with an 8.3% pa. return while AustralianSuper’s Balanced option closely followed with an average 10 year return of 8.2% pa.
With shares once again driving most of 2025’s returns, passive investment options, where a fund tracks a specified index, have outperformed their more traditional actively managed counterparts for the third consecutive year. Raiz Super – Moderately Aggressive was also the highest performing balanced passive option with its 12.4% return over the year, well above the next highest performer, HESTA’s Indexed Balanced Growth option which returned 10.5%.
The table below displays the top 5 passive fund returns over 2025 and the past 5 years, as most of these options having been available within superannuation for less than 10 years.
Returns from investments with a sustainable focus were more subdued than in previous years, delivering similar returns to the broader Balanced options. The top performer for 2025 was the Australian Retirement Trust – Super Savings – Socially Conscious Balanced option with a 10.6% return, followed by the Hostplus – Socially Responsible Investment – Balanced option with 10.1%. All other tracked sustainable Balanced options returned under 10% for the year. Over a 5-year period, the Aware Super Future Saver – Balanced Socially Conscious option was the top performer with an 8.8% per annum return.
Director of SuperRatings, Kirby Rappell said, “We have seen another strong year of superannuation returns. Funds continue to deliver above expected returns; however, there remain concerns over how long such growth can last. A negative return in November meant the median Balanced option missed reaching double digits for 2025 and the outlook for 2026 is increasingly unclear. We encourage all members to focus on their long-term outcomes and ensure they are comfortable with their superannuation settings so they can tune out any noise in the coming months.