Voluntary super contributions dropping off

After approaching near-record highs in FY2016, voluntary superannuation contributions dropped slightly in FY2017 to an average of $1,054, as super members took a breather from the bull market of recent years.

According to SuperRatings, this was a 10 per cent decline on FY2016, but just lower than the highest average contribution of $1,212 in FY2008. It was also $260 higher than the eleven-year average, as voluntary contributions continued their slow ascent after more than halving in the years after the Global Financial Crisis.

The research house warned that it was as yet unclear how volatility throughout this year had impacted member contributions, but said that super balances were still well ahead over the last decade despite recent fluctuations.

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Despite volatility in the first two weeks of this month costing members with $100,000 invested in a balanced option in 2008 $2,700, those members would still have seen a 9.7 per cent return over the decade to September’s end, with that balance now being worth $193.751.

SuperRatings found that those with 100 per cent exposure to Australian shares would have fared worse for those two volatile weeks however, experiencing a decline of around $4,800 for the same period.

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Hmmm. Did the "research house" consider the possibility this had something to do with changes to super contribution rules?

Well said.

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