Many Australians depend on their superannuation for financial security and wellbeing during the retirement phase. But the selection process can be complex, requiring future retirees to assess various factors. These include:
Ultimately, the most important consideration is performance. A fund’s past performance, while not an indicator of its future performance, can serve as a guide for prospective members. In particular, a fund’s ability to consistently deliver strong returns for members over a long-term investment horizon should form part of the decision-making process.
Australia’s superannuation industry has over-performed since its inception over 30 years ago. According to APRA data, super funds have collectively delivered positive investment returns for 26 of 31 financial years, with an average ROA of 7.8 per cent – well above the long-term target of 6 per cent. Over the latest reported financial year (2022–23), super funds delivered a return of 9.2 per cent.
But on an individual basis, performance can vary significantly, with some funds making a larger relative contribution to the overall performance of the industry. Using publicly available data to compare funds is key, with APRA’s performance heatmaps and quarterly statistics a vital source of information.
Ultimately, it’s important to leverage the full breadth of online resources to compare funds, not only on performance but also on the overall proposition.
Below are profiles of superannuation funds recently recognised for success at Super Review’s annual Super Fund of the Year Awards.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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