New data reveals top performing super funds

Your superannuation return for the last financial year is being prepared, and you may notice it’s higher than usual. But how does your superfund stack up against others? The answer could be the difference between thousands of dollars.

It’s been a bountiful year for Australia’s superannuation fund members, with the average balanced fund returning 9.2% after tax.

The best performing superfund was HostPlus, returning 12.5% followed by AustSafe with 11.4%, and the nation’s largest fund, Australian Super on 11.1%.

Source: SuperRatings
*Includes public offer funds only.

But it’s where your superfund invests their money that boosts the returns.

“We’re investing in real assets. We’re investing in investments such as airports, toll-roads, railway lines,” said HostPlus chief executive officer David Elia.

It’s important to know if your fund is keeping up. If not, it could be costing you thousands.

For example, take a 22 year old entering the workforce on a salary of $45,000.

Say they change jobs 3 times – raising their salary in their 40s above $100,000 a year.

If they work until age 70, with a typical super fund return, they’ll end up with $807,000.

However, if their fund returns just 1 percent more – each and every year – the final balance will be $1.02 million – $213,000 extra.

But one-year returns are volatile. Long-term returns give a better guide.

Over the past 10 years, UniSuper had the best return, averaging 7.6 percent a year. Other good options include CareSuper and Equip My Future, REST and HostPlus.

Source: SuperRatings
*Interim results

“You want to make sure your provider has performed well against the benchmark across the long-term, medium-term and short-term,” said Kirby Rappell from SuperRatings.

So if you’re looking for a better option for your super, this may be a great time!

* In highlighting particular offers we are not making specific recommendations as this article does not cover all available products and may not compare all features relevant to you. Any advice provided is general in nature and does not take account of your needs, objectives or financial situation. Individuals should consider their own circumstances, and if in doubt seek appropriate advice, before proceeding.