Lifecycle funds have delivered strong 2025 returns, with higher growth exposure rewarding younger members despite market volatility.
Superannuation members invested in Lifecycle funds have delivered another year of solid outcomes in 2025, with data showing higher growth exposure continued to reward younger members before broader market considerations came into play.
All of the top 10 MySuper lifecycle options for members aged 45 and under have produced double-digit returns in 2025, underpinned by higher allocations to growth assets.
Leading the cohort, Colonial First State First Choice – Lifestage 1980–84 and Colonial First State Essential Super – Lifestage 1980–84 both returned 12.2 per cent, supported by growth asset exposures of more than 90 per cent.
Younger members in these Lifecycle options have continued to benefit from higher risk settings, with several options delivering returns above 11 per cent across the year.
Top 10 Lifecycle options
| Fund | 2025 performance |
| Colonial First State First Choice – Lifestage 1980-84 | 12.2% |
| Colonial First State Essential Super – Lifestage 1980-84 | 12.2% |
| Virgin Money Super – LifeStage Tracker Born 1979 – 1983 | 11.8% |
| Vanguard Super – Lifecycle Age 47 and under | 11.6% |
| Bendigo MySuper – Growth Index Fund | 11.1% |
| AMP SignatureSuper – MySuper 1980s | 11.0% |
| Russell iQ Super – MySuper GoalTracker Age 45 | 10.9% |
| ANZ Smart Choice Super – MySuper 1980’s | 10.7% |
| Team Super – Lifecycle Investment Strategy Under Age 50 | 10.3% |
| Australian Retirement Trust – Super Savings MySuper – Age 50 and under | 10.1% |
Source: Superratings, January 2025
Meanwhile, the median Balanced option finished 2025 with an 8.8 per cent return, after gaining 0.3 per cent in December, according to estimates from SuperRatings. While this result has fallen short of last year’s 11.1 per cent, it has comfortably exceeded the long-term average annual return of 6.5 per cent since 2000.
Balanced outcomes have remained central to overall member performance. Over the year, the SuperRatings Balanced (60–76) Index has delivered 8.8 per cent, with longer-term returns of 10.0 per cent per annum over three years and 7.4 per cent per annum over ten years.
Growth-oriented members have also benefited, with the median growth option returning 10.2 per cent for the year, while the capital stable option has delivered 6.2 per cent.
Pension members have recorded even stronger results, reflecting the benefit of tax concessions on earnings.
The median pension balanced option returned 9.8 per cent for 2025, outperforming its accumulation counterpart, while pension growth options delivered 11.0 per cent over the year.
Balanced options have also delivered strong long-term outcomes. An investment of $100,000 in the median Balanced option 16 years ago would now be worth $304,911, compared with $337,878 for the median Growth option and $146,378 for Cash.
Among individual funds, Raiz Super has topped the SuperRatings Balanced (60–76) Index for the second consecutive year, with its Moderately Aggressive option returning 12.4 per cent in 2025. legalsuper and NGS Super have followed with returns of 11.3 per cent and 11.2 per cent respectively.
Over a 10-year horizon, Hostplus – Balanced has remained the top-performing option with an average annual return of 8.7 per cent, ahead of Australian Retirement Trust – Super Savings – Balanced at 8.5 per cent and Hostplus – Indexed Balanced at 8.3 per cent.
Shares have again driven the bulk of returns in 2025, with international equities the only asset class to reach double-digit performance. Passive balanced options have continued to outperform actively managed strategies for a third consecutive year, led by Raiz Super – Moderately Aggressive.
Sustainable balanced options have delivered more subdued results, broadly in line with the wider balanced universe. The Australian Retirement Trust – Super Savings – Socially Conscious Balanced option has been the top sustainable performer for 2025, returning 10.6 per cent.
SuperRatings director, Kirby Rappell, said: “We have seen another strong year of superannuation returns.”
“Funds continue to deliver above expected returns; however, there remain concerns over how long such growth can last. A negative return in November meant the median Balanced option missed reaching double digits for 2025 and the outlook for 2026 is increasingly unclear.
“We encourage all members to focus on their long-term outcomes and ensure they are comfortable with their superannuation settings so they can tune out any noise in the coming months.”
SuperRatings has warned that geopolitical tensions and persistent inflation could make 2026 a more challenging environment, reinforcing the importance of long-term discipline for members across both lifecycle and balanced strategies.
