Balanced and growth superannuation investment options across the sector largely saw double-digit investment returns for the 12 months to December, the Association of Superannuation Funds of Australia (ASFA) has found.
According to recent analysis from the industry body, examining the daily unit prices of major super funds for balanced super options over the period shows a typical return of at least 10.5 per cent, with some recording nearly 12 per cent investment returns.
Meanwhile, some high-growth investment options are reporting annual returns as high as 15 per cent.
ASFA chief executive Mary Delahunty welcomed the results.
“These returns for 2024 are a great result for working Australians who stand to enjoy a higher standard of retirement living thanks to our world-class superannuation system,” Delahunty said on Tuesday.
“While strong international share markets have helped propel returns over the last 12 months, it’s the consistent, sophisticated portfolio construction from superannuation funds’ expert investment teams that deliver terrific long-term results regardless of what is happening on the markets.”
Moreover, ASFA found that the typical annual return over 10 years for balanced options came to exceed 7 per cent, an investment result “far in excess of returns after tax from term deposits, and well ahead of inflation”, the association noted.
“This is what our superannuation system is all about – delivering great results, year after year, to help Australians have the retirement they deserve,” Delahunty said.
“There can be a lot of noise around super, but this – the consistent delivery of strong, long-term returns, is what matters to Australians.”
SuperRatings similarly found that Australia’s super funds strongly benefited from international share exposures, leading to double-digit returns.
According to them, the median balanced fund was expected to return 11.5 per cent in 2024 with the “vast majority” set to deliver more than 10 per cent.
Although December returns were lower, this was countered by strong performance in the previous 11 months. SuperRatings said superannuation returns had managed to outpace inflation and withstood the market volatility exhibited throughout the year.
“Despite the consistent positive returns over 2024, plenty of risks remain to be navigated over 2025,” the research house said at the time.
“Most of this year’s returns have come from share markets, which are now priced at historical highs both in Australia and internationally. A correction in share markets would have a strong flow-on effect to member’s superannuation balances and members should be prepared to see ups and downs over the short term.
“While risks remain, the focus for most members should be on the long term. Funds have consistently demonstrated their ability to swiftly recover from downturns and members with many years until retirement can afford to block out short-term noise in returns.”
