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Super funds suffer $20.9bn quarterly decline: APRA
Superannuation assets have fallen in the March quarter primarily due to negative investment returns amid share market volatility.
The Australian Prudential Regulation Authority’s (APRA) latest quarterly superannuation statistics revealed total superannuation assets declined by 0.8 per cent over the quarter to $4.1 trillion as at March 2025, of which $2.9 trillion was in APRA-regulated funds.
Over the last 12 months, APRA said superannuation returns grew modestly with a 5.9 per cent return in the year to March 2025.
Total superannuation contributions rose 14.4 per cent to $202.8 billion over the year, driven by a 10.3 per cent rise in employer contributions to $147.1 billion and a 26.9 per cent surge in member contributions to $55.7 billion.
For the March quarter alone, total contributions came in at $46.8 billion, down from $49.1 billion in the preceding quarter, with both employer and member contributions shrinking slightly.
Super funds recorded $148.98 billion in investment income over the year to March, down sharply from $273.62 billion the year prior, with a $20.9 billion loss in the March quarter following strong gains in the previous two quarters – of $65.3 billion and $103 billion, respectively.
Moreover, according to APRA data, benefit payments increased by 11.6 per cent to $127.5 billion in the year ending in March 2025 – the result of lump sum payments rising by 9.1 per cent to $70.0 billion and pension payments increasing by 14.9 per cent to $57.6 billion.
The five-year annualised rate of return (ROR) to March 2025 was 8.1 per cent, while the ROR for the year ending March 2025 was 5.0 per cent.
Earlier this month, Super Ratings reported the median balanced super option returned 0.6 per cent for the month of April, delivering modest gains despite a roller-coaster month for global equities.
At the time, the ratings agency said super fund returns have recovered to early January levels, with members on track for a solid 6 per cent gain so far, this financial year.
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