Retirement
How did your super go this year?
With two weeks to go for the calendar year, it is predicted that superannuation fund members in a median growth fund will see their nest egg grow by 14.5 per cent.
How did your super go this year?
With two weeks to go for the calendar year, it is predicted that superannuation fund members in a median growth fund will see their nest egg grow by 14.5 per cent.
Chant West’s numbers showed gains of 1.9 per cent for November, leading to the 10th positive calendar year in the past 11.
“It has been a tremendous year for super funds, with the median growth fund return on pace to finish in the mid-teens,” Chant West senior investment research manager Mano Mohankumar said.
“That’s a much better result than what we could have expected at the start of the year and a major turnaround from a year ago when growth funds lost 4.6 per cent in the December 2018 quarter and investor sentiment was decidedly negative.”
The research manager warned members that the superannuation industry is facing strong headwinds in 2020.
“They need to understand that the strong returns they’ve experienced over the past decade aren’t sustainable over the long term, and they should expect more modest returns ahead.
“With record-low interest rates and low inflation, asset prices have risen to levels that are at or approaching full valuation,” Mr Mohankumar said.
However, Mr Mohankumar believes fund managers are well versed for economic downturns, which should cushion against some of the potential headwinds the industry is facing.
“Whatever the outlook, Australians should take comfort that their superannuation is generally invested in well-diversified portfolios, with investments spread across a wide range of asset sectors.
“The typical growth fund has more resilience built in than it did a decade ago, so it is better positioned to weather a period of investment market weakness if that eventuates,” Mr Mohankumar concluded.
RELATED ARTICLES
About the author
About the author
Superannuation
Rest strengthens digital engagement with new leadership appointment
In a significant move to enhance its digital member services, Rest, one of Australia's largest profit-to-member superannuation funds, has appointed Darran Arnott as General Manager, DigitalRead more
Superannuation
Aware Super earns adviser-ready fund accreditation under new national framework
In a significant development for the financial advice sector, Aware Super has been awarded the prestigious Adviser-Ready Fund accreditation. This recognition comes under a new national framework ...Read more
Superannuation
Superannuation overhaul: Payday Super set to enhance retirement savings for millions
In a significant shift set to impact the retirement savings of millions of Australians, the way superannuation contributions are paid is about to undergo a major overhaul. However, despite the ...Read more
Superannuation
Rest expands retail property portfolio with US$250 million investment in US real estate fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced a substantial investment in a US-based real estate fund, marking a strategic expansion of its retail property ...Read more
Superannuation
TelstraSuper and Aware Super merger advances with key agreement
In a significant development for the Australian superannuation sector, TelstraSuper and Aware Super have reached a pivotal milestone in their merger journey by signing the Successor Fund Transfer ...Read more
Superannuation
Rest applauds legislative reforms to boost superannuation for low-income earners
In a landmark move, Rest has expressed strong approval following the successful passage of legislation aimed at enhancing the Low Income Superannuation Tax Offset (LISTO) through ParliamentRead more
Superannuation
Rest promotes Rachel O’Connor to head fixed income team
In a significant move within Australia's superannuation sector, Rest, one of the largest profit-to-member funds in the country, has announced the promotion of Rachel O'Connor to lead its Fixed Income ...Read more
Superannuation
Employment Hero raises concerns over superannuation bill's impact on small businesses
Employment Hero has raised significant concerns regarding the implementation of the proposed Supporting Choice in Superannuation and Other Measures Bill, which was recently recommended for passage by ...Read more
Superannuation
Rest strengthens digital engagement with new leadership appointment
In a significant move to enhance its digital member services, Rest, one of Australia's largest profit-to-member superannuation funds, has appointed Darran Arnott as General Manager, DigitalRead more
Superannuation
Aware Super earns adviser-ready fund accreditation under new national framework
In a significant development for the financial advice sector, Aware Super has been awarded the prestigious Adviser-Ready Fund accreditation. This recognition comes under a new national framework ...Read more
Superannuation
Superannuation overhaul: Payday Super set to enhance retirement savings for millions
In a significant shift set to impact the retirement savings of millions of Australians, the way superannuation contributions are paid is about to undergo a major overhaul. However, despite the ...Read more
Superannuation
Rest expands retail property portfolio with US$250 million investment in US real estate fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced a substantial investment in a US-based real estate fund, marking a strategic expansion of its retail property ...Read more
Superannuation
TelstraSuper and Aware Super merger advances with key agreement
In a significant development for the Australian superannuation sector, TelstraSuper and Aware Super have reached a pivotal milestone in their merger journey by signing the Successor Fund Transfer ...Read more
Superannuation
Rest applauds legislative reforms to boost superannuation for low-income earners
In a landmark move, Rest has expressed strong approval following the successful passage of legislation aimed at enhancing the Low Income Superannuation Tax Offset (LISTO) through ParliamentRead more
Superannuation
Rest promotes Rachel O’Connor to head fixed income team
In a significant move within Australia's superannuation sector, Rest, one of the largest profit-to-member funds in the country, has announced the promotion of Rachel O'Connor to lead its Fixed Income ...Read more
Superannuation
Employment Hero raises concerns over superannuation bill's impact on small businesses
Employment Hero has raised significant concerns regarding the implementation of the proposed Supporting Choice in Superannuation and Other Measures Bill, which was recently recommended for passage by ...Read more
