Super sees double digits second year in a row
Superannuation balances enjoyed double digit returns for the second year in a row, with the median superannuation balanced option closing the financial year with a 12.6 per cent gain.
This is the fifth year in a row the median balanced option has returned positively, and follows last year's 14.7 per cent return.
The main driver for these both locally and globally was the performance of listed equity markets for the second year in a row.
Consequently, those invested in aggressive investment options have seen better returns.
The median growth option (with exposure to growth style assets of between 77 per cent and 90 per cent) is predicted to return around 14 per cent, while the median capital stable option (with exposure to growth style assets of between 20 and 40 per cent), is predicted to return seven per cent for the financial year.
Around 60 to 70 per cent of Australians are invested in the funds' default investment option, which is mostly the balanced investment option.
SuperRatings research also showed the returns in eight out of the last 10 years have also been positive.
Median superannuation balanced option's 10-year return is still hovering at 6.9 per cent, slightly higher than most funds' aim of 3.5 per cent above inflation.
Investors investing $100,000 10 years ago would have seen a 90 per cent return over this period, and would be worth about $189,700 as at the end of June.
AUTHOR
Staff Writer
Recommended for you
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
Online investment adviser and fund manager Stockspot has introduced Stockspot Super, Australia’s first 'ETF only' superannuation product. superannuation product.
ASIC has called on superannuation funds to improve their oversight of advice fee deductions following an investigation of 10 trustees that found $990 million was charged in one year.
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
