Kirby Rappell

Superannuation balances fell sharply over March as events in Iran evolved and the disruption to global oil supplies exacerbated emerging economic pressures. Leading research house SuperRatings estimates the median option will report negative returns across the balanced, growth and capital stable indices.

The median Balanced option is estimated to have declined by -3.2% in March, wiping out the gains accumulated since September 2025. As a result, the financial year to date return for the SR Balanced index has eased to 2.8%. The median Growth option is estimated to have fallen by -4.1% and more defensive strategies were not immune, with the median Capital Stable option recording an estimated loss of -1.8% over the period.

“With just one quarter remaining in the financial year, the pathway for funds to once again outperform their long-term average is narrowing, with returns confronting elevated levels of uncertainty across both global and domestic markets”, commented Kirby Rappell, Director of SuperRatings. “Markets are responding quickly to a rapidly evolving situation. This means we are likely in a period of greater volatility. While this will flow through to balances, it should be remembered that member’s super is usually invested across a range of asset classes (not just shares) and that over the long term, super returns remain sound.”

Pension returns followed the same downward trend seen in accumulation indices, with SuperRatings estimating losses across Balanced, Growth and Capital stable pension options in March will exceed accumulation option losses.

“March’s results reflect the reality that superannuation returns are being pulled in multiple directions: geopolitical issues, global market volatility, and interest rate changes all influence performance,” continued Mr Rappell. “While negative months are difficult, it’s important to remember super is a long-term investment and markets can recover over time.”

Mr Rappell also noted that periods of market stress can increase switching risk, where members may respond to uncertainty by moving their investments to cash or more defensive assets. “When markets fall sharply, it’s natural for some members to feel uneasy and consider switching to cash,” he said. “But switching after markets have already fallen can lock in losses and may mean missing the rebound when conditions improve, potentially leading to a poorer retirement outcome over the long term.”

SuperRatings encourages members who are concerned about short-term market volatility to seek financial advice from their fund or a trusted financial adviser before changing their investment option. Members should also ensure they are aware of any costs involved in getting advice before proceeding.

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Kirby Rappell

Despite the Reserve Bank of Australia raising rates at the start of the month superannuation balances continued to grow in February. Superannuation research house, SuperRatings, estimates the median balanced option rose by 1.1% over the month.

To the end of February, funds have delivered small but consistent positive returns in most months to drive a respectable 6.3% return for the financial year to date. However, with events currently occurring in the Middle East and inflation expectations pointing towards the potential of further rate increases, funds are likely to have an uncertain path towards the end of FY26.

The median growth option rose by an estimated 1.2% over February, while the median capital stable option is estimated to deliver 0.8% to members.

Pension returns delivered similar results with the median balanced pension option growing by an estimated 1.3%. The median capital stable pension option is estimated to return 0.9% over the month, while the median growth pension option is estimated to be in line with Balanced options returning 1.3% for the same period.

We have already seen significant movement in share markets over the beginning of March with super balances estimated to now sit below where they were at the beginning of February. The median balanced option is estimated to have fallen by -1.6% over March, while the median growth option lost -2.0% over the same period. The more defensively positioned Capital Stable option is also estimated to have taken a loss from the war, with an estimated -0.9% fall since the beginning of the month.

“The events currently occurring in the Middle East have brought fresh uncertainty to markets already feeling the pressure of expectations surrounding artificial intelligence”, commented Director of SuperRatings, Kirby Rappell. “While we have yet to fully see how returns will respond, it is worth remembering that when markets are more turbulent, the focus should be on long-term strategy and outcomes to ensure you reach your retirement goals. For any members that are concerned about their fund’s performance it may be helpful to seek advice before making a decision. Advice services are often available through the fund, or members can seek professional financial advice, just remember to confirm what costs, if any, are involved before proceeding with the advice”.

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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.

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Kirby Rappell

Property and Australian shares weighed on fund returns in November, breaking the seven-month run of positive returns that have been boosting superannuation balances. Leading superannuation research house SuperRatings estimates that the median balanced option returned -0.5% to members over the month.

“We expect most asset classes to have delivered negative returns over the month with Listed Property and Australian shares seeing a pullback.” commented Kirby Rappell, Director of SuperRatings. “While this month breaks the strong run, 2025 is well on track to be an above average year for member balances, with the 11 months to 30 November 2025 estimated to have returned 8.7% against a median of 7.1% for the full year since 2000.”

The median growth option fell by an estimated -0.6% in November, while the median capital stable option is estimated to return -0.2% for the period.

Pension returns also fell over the month, with the median balanced pension option also falling by an estimated -0.5%. The median capital stable pension option is estimated to fall -0.2% over the month, while the median growth pension option is estimated to fall -0.7% for the same period.

“The estimated decline means a second consecutive double digit calendar return is unlikely”, continued Mr Rappell, “however members should be pleased that returns remain strong over the long term with the median balanced option providing an estimated 7.1% per annum over the last 25 years. For pension members, the results have been even better with the median balanced pension product is estimated to return 9.5% for the 11 months to 30 November 2025”.

While the returns so far are worth celebrating, the reserve bank of Australia held interest rates in the final meeting of 2025 and the trajectory of inflation into 2026 remains somewhat uncertain. It is important to remember the long-term nature of superannuation and the benefit of holding steady to your long-term strategy should we see increased ups and downs over the second half of the 2026 financial year.

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Kirby Rappell

The strong run of positive returns for superannuation funds continued in October with superannuation research house SuperRatings estimating that the median balanced option returned 1.3% to members over the month. October marks the seventh consecutive month of positive returns, while also making this year the sixth time over the past 25 years the first four months of the financial year have all delivered positive returns.

“Share markets continued to remain optimistic over October driving a good return for the month” commented Kirby Rappell, Director of SuperRatings. “While international shares remain the key driver, Australian shares had a better month, and outcomes were positive across key asset classes.”

The median growth option grew by an estimated 1.4% in October, while the median capital stable option grew by 0.8%.

Pension returns were also strong over the month, with the median balanced pension option increasing by an estimated 1.4%. The median capital stable pension option is estimated to grow 0.9% over the month while the median growth pension option is estimated to rise 1.5% for the same period.

“November brought the second consecutive month of interest rates being left on hold by the Reserve Bank of Australia with inflation sitting higher than anticipated. Geopolitical tensions continue to create the potential for market shocks meaning we may see some more bumps in the road over the coming months” continued Mr Rappell. “However, funds have had a strong start to the financial year and returns remain well above objectives over the long term. We encourage members to review any changes with their long-term strategy in mind and seek advice if they are unsure how to maximise their final retirement outcomes.”

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Kirby Rappell

With the AI thematic and a US federal rate cut bolstering international share market returns, superannuation research house SuperRatings estimates that the median balanced option returned 0.8% to members over September. International share markets delivered strong returns over the month, particularly markets in southeast Asia and the US. The returns cap off a strong first quarter for FY26 with the median balanced fund expected to return 3.6% over the last three months.

The median growth option is estimated to grow 0.9% in September, while the median capital stable option is estimated to return a more modest 0.5%.

Pension returns were also positive for the month, with the median balanced pension option increasing by an estimated 0.9%. The median capital stable pension option is estimated to rise 0.6% over the month while the median growth pension option is estimated to rise 1.0% for the same period.

“While international markets have performed well this month, Australian shares are expected to have a dampening effect on overall returns as fears that higher than expected levels of inflation will reduce the likelihood of further rate cuts” commented Kirby Rappell, Director of SuperRatings. “Over recent years we have seen a shift in super fund investments towards a more equal mix of Australian and international shares, compared to the historically higher Australian shares allocation.”

“We continue to see the benefits of having a range of asset types, regions and sectors with a long-term focus” continued Mr Rappell. “For most of us, super is a long-term investment, and we encourage members to formulate and stick to a long-term plan that is suitable for them. Funds provide a range of education, tools and advice that can help members work out a suitable strategy, or members can seek independent financial advice, just make sure to check on and be comfortable with any cost for advice before going ahead.”

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Mano Mohankumar

Super funds’ strong start to FY26 continues

Super funds continued their strong start to FY26 with the median growth fund (61 to 80% in growth assets) up 1.3% in August. With international share markets up in September so far, Chant West estimates the median growth fund is up 3.2% over the first two-and-a-half months of FY26.

Chant West Head of Superannuation Investment Research, Mano Mohankumar, says that listed share markets, which are the main drivers of Growth fund performance, delivered positive returns in August. “Australian shares reached new highs after advancing 3.2% over the month, buoyed by a strong rebound from the resources sector.

“Despite ongoing uncertainty around where tariffs will land, international shares also performed well, supported by a robust US corporate earnings season and increasing expectations of an interest rate cut by the US Federal Reserve at its September meeting. Developed market international shares gained 2.1% in hedged terms, but the appreciation of the Australian dollar (up from US$0.64 to US$0.65) limited the return to 0.9% in unhedged terms. Emerging markets shares underperformed developed markets with a small loss of 0.4% in unhedged terms. Over the same period, Australian and international bonds posted gains of 0.3% and 0.5%, respectively.”

The table below compares the median performance to the end of August 2025 for each of the traditional diversified risk categories in Chant West’s Super Fund Performance Survey, ranging from All Growth to Conservative. All risk categories have generally met their typical long-term return objectives, which generally range from CPI + 1.5% for Conservative funds to CPI + 4.25% for All Growth.

Long-term performance remains above target

MySuper products have been operating for just over 11½ years, so when considering performance, Mohankumar says it’s important to remember that super is a much longer-term proposition.

“Since the introduction of compulsory super in July 1992, the median growth fund has returned 8% p.a. The annual CPI increase over the same period is 2.7%, giving a real return of 5.3% p.a. – well above the typical 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 7.1% p.a., which is still comfortably ahead of the typical objective.”

The chart below shows that for most of the time, the median growth fund has exceeded its return objective over rolling 10-year periods, which is a commonly used timeframe consistent with the long-term focus of super. The exceptions are two periods between mid-2008 and late-2017, when it fell behind. This is because of the devastating impact of the 16-month GFC period (end-October 2007 to end-February 2009) during which growth funds lost about 26% on average.

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Kirby Rappell

Super returns continue to build over August

Following a smooth start to the financial year in July, super balances continued to rise in August with leading superannuation research house SuperRatings estimating that the median balanced option returned 1.3% to members over the month.

“In contrast to the volatility we saw at the beginning of August last year, returns have seen a smoother performance over the first two months of FY26.” commented Kirby Rappell, Director of SuperRatings.

The median growth option grew by an estimated 1.5% in August, while the median capital stable option, rose an estimated 0.8%.

Pension returns also continue to deliver for retirees, with the median balanced pension option increasing by an estimated 1.4%. The median capital stable pension option is estimated to have returned 0.9% over the month while the median growth pension option is estimated to have returned 1.7% for the same period.

We expect the major factor influencing super returns over the short term will shift from the impact of US tariffs back towards inflation levels and central bank decisions on when to act on interest rates, both in Australia and the US.

“We have now had five consecutive months of positive monthly returns for super, building Australian’s retirement savings.” continued Mr Rappell. “While the longer-term impacts of US tariffs, high valuations and the trajectory of inflation need careful monitoring, members should be comforted by the track record of Australian funds delivering strong returns for members over the long term.”
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Kirby Rappell

In a year of extraordinary global events, Australians can find comfort in their retirement balances continuing to grow. The first half of the year brought back some much-needed stability to fund returns; however, the second half saw extreme ups and downs as global events threw markets into turmoil. The final result, a double digit return for the median Balanced option, fails to capture the ups and downs experienced over the 12 months to 30 June 2025 but reinforces the benefit of taking a long-term approach to retirement savings.

In what feels like a replay of the past two years, international technology and Australian financial shares drove the majority of returns with options designed to track a benchmark outperforming more active investing strategies thanks to exceptional multiyear growth in a small number of companies.

All Balanced funds, those with a strategic allocation of between 60% to 76% of their portfolio invested in growth assets, are again expected to deliver positive returns to members, while over half are expected to reach double digits for the year. Raiz Super’s Moderately Aggressive option took out the top spot in the SR50 Balanced (60-76) Index for the year ending June 2025 with a return of 13.8%, while legalsuper’s MySuper Balanced option return of 12.6% came in second. Hostplus’ Indexed Balanced option ranked third with a 12.0% return, closely followed by Colonial First State’s Enhanced Index Balanced option which also returned 12.0%.

The table above displays the performance of the top performing Balanced funds for the year to 30 June 2025, as well as showing 10-year returns for those options with 10-year performance history, an important consideration given the long-term nature of superannuation investments.

“It’s pleasing to see a range of funds in this year’s top performers with some smaller funds showing their ability to deliver strong returns to their members through uncertain times” said Kirby Rappell, Director of SuperRatings.

Passively invested options, those tracking a benchmark at low cost, had another stellar year led by the strong returns of the magnificent seven in the US and CBA in Australia. The median passive investment option returned 11.8% for the year and 8.8% per annum over the past five years.

The top performing passive fund was Raiz Super’s Moderately Aggressive option with a return of 13.8% for the year to 30 June 2025, followed by netwealth Super Accelerator’s BlackRock GSS Index Plus Growth Fund and Aware Super’s Future Saver – Balanced Indexed option at 13.7% and 12.7% respectively.

Younger members with increased exposure to growth assets benefited from being invested in default lifecycle options over the year. For members aged 45 invested in lifecycle options the median return was 12.0% for the year. “While higher exposure to growth assets has benefited members over the past few years, it also comes with increased ups and downs, and we encourage members to learn how their fund’s investment strategy works so they are comfortable with annual and long-term performance outcomes.”

Members invested in sustainable focused options have seen returns similar to the broader balanced option outcomes with the median sustainable balanced option returning 10.2%. Vanguard Super’s Ethically Conscious Growth option delivered the strongest return for a sustainable option with a 12.6% return for the year.

“With so many global events over the year there has been an increased level of uncertainty around fund returns this year” commented Mr Rappell. “However, superannuation is designed to build and maintain wealth for retirement and since most of us will have plenty of time until we retire and begin accessing our superannuation it is important to block out as much of the noise as possible and focus on how we are doing over the long term”.

Hostplus’ Balanced option remained the highest performing balanced option over 10 years returning of 8.3% p.a. followed by Australian Retirement Trust’s Balanced option and AustralianSuper’s Balanced option with 8.2% and 7.9% respectively.

“This year has been a strong result, well above the long-term annual return of 7.2% since compulsory superannuation began in 1992. Converted into dollars, $1 invested in the median balanced super fund in 1992 would now be worth approximately $2.84” continued Mr Rappell.

More ups and downs expected ahead over FY26

The increased ups and downs in the second half of FY25 were another reminder that superannuation settings need to be monitored to ensure they are suitable to current circumstances. Depending on when members need to begin drawing on their funds, they may have the option to ride out these kinds of ups and downs, however for members nearing, or in, retirement minimising these fluctuations can be a key factor in their retirement planning.

“Protecting members’ balances from sharp falls is a key function of superannuation investment teams and grows in importance as members near retirement or uncertainty rises,” said Mr Rappell. “While some funds that were more defensively positioned didn’t benefit as much from growth over the year, having strong diversification helps shelter members from market fluctuations and supports smoother returns over the long term”.

The table below shows the top 10 funds ranked according to their level of volatility, which measures how much members are being rewarded for taking on the ups and downs in their balances.

Members in the Australian Retirement Trust’s Super Savings product had the least ups and downs over the past seven years and returned of 8.0% p.a. over the past 7 years. This was followed by Brighter Super and Aware Super with returns of 8.3% and 7.5% p.a. respectively.

End of financial year is a great time to check not just how your fund has been performing but also that your superannuation settings are still right for you. Making changes that reflect your current situation will truly pay off when you see the difference it makes to your retirement balance. It is usually worth checking if the investment option you are invested in remains suitable for your current lifestyle and risk tolerance, any insurance cover is at an appropriate level and cost and to make sure all your personal details are up to date. If you are unsure about what your settings should be, most funds have a range of tools and calculators on their websites to help you. You also don’t have to wait for your annual statement to find your current details, with most funds offering a range of communication channels including phone, online portal, chat and mobile apps.

When making a choice it may also be worth seeking some help. SuperRatings provides over 200 product ratings on its website and funds often offer advice services to their members either directly or through associated advice networks. Advice comes in a range of detail and cost so make sure you understand what services are available and how much they will cost before going ahead with the service. Alternatively, you can always contact your own trusted financial adviser to discuss your superannuation settings. If you don’t have one yet the MoneySmart website contains information on how to choose a suitable adviser.

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Kirby Rappell

Super funds have delivered a third straight year of strong returns with shares rallying in the final quarter to push full year returns into double digits. Leading superannuation research house SuperRatings estimates that the median balanced option returned 1.4% over the month of June, bringing the return for the year to 30 June 2025 to an estimated 10.1%. Indeed, since the bottom of the GFC in 2008/09, funds have delivered positive returns in 14 out of the past 16 years, showing the success funds have achieved in growing members’ balances.

While funds built momentum over the start of the year, the second half of the year has been a rollercoaster for members’ returns. In the first seven months to 31 January 2025, we saw super funds’ delivering a return of 8.0%. Following liberation day, this was estimated to have fallen as low as 0.8% before rebounding to finish the year at 10.1%. Since the change in US administration, funds have returned an estimated 1.8% to members invested in the median balanced option.

Executive Director of SuperRatings, Kirby Rappell, said “We saw exceptional volatility in returns over the year, particularly following the announcement of US tariffs in early 2025, however the benefit of staying the course was once again proven as a quick rebound has resulted in the third double digit return year over the past decade.”

Mr Rappell continued “Superannuation remains a crucial long-term investment for improving the retirement lifestyles of Australians, and funds have proven they are well positioned to deliver over time. This year’s result reinforces the positive outcomes from our world-leading superannuation system as funds continue to exceed their return objectives.”

The median growth option returned an estimated 1.5% over the month, while capital stable options, which hold more traditionally defensive assets such as cash and bonds, returned 0.9%.

Pension returns also ended the financial year strongly, with the median balanced pension option up an estimated 1.6% over June. The median growth option also rose by 1.6% while the median capital stable option is estimated to deliver a 1.0% return for the month.

Super fund returns shrug off increasing market disruptions

The chart below shows that the average annual return since the inception of the superannuation system is 7.2%, with the typical balanced fund exceeding its long-term return objective of CPI+3.0%.

For the third consecutive year, share markets have largely driven super fund outcomes with both domestic and international shares delivering strong returns to members. Fund returns shrugged off significant disruption over the year including US tariff announcements, escalating geopolitical tensions in the Middle East, China’s rising AI capabilities and lingering uncertainty around the trajectory of inflation, to deliver the strongest result since the 2021 COVID rebound.

In global markets, technology stocks continued to deliver, although returns were less concentrated in the Magnificent Seven than previous years, driven by broad, ongoing investment in AI and a positive outlook for cryptocurrency, which also fuelled growth in supporting infrastructure such as electricity generation and supply. More locally, the financial sector, driven by bank shares also continued to outperform, with CBA shares in particular driving growth.

Despite the increased noise, members can take comfort in knowing their retirement savings continue to grow, with one dollar invested in the median Balanced super fund just before the global financial crisis now worth approximately three dollars.

We continue to emphasise the importance of setting a long-term strategy for your superannuation. Despite the strong performance over the past three years, plenty of risks remain. Geopolitical tensions and cost of living pressures haven’t disappeared, and we suggest members remain alert to market conditions and review their longer-term settings, such as whether they are in the most appropriate investment option for their situation, as well as checking their fees when they receive their annual statements.

Mr Rappell commented, “Overall it’s been another fantastic year for Australians’ retirement balances and members should celebrate these returns. However, expectations that similar returns will continue in the coming years should be tempered with markets currently sitting at record highs.”

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