Retirement
Super funds deliver slim January gains
Superannuation funds have made ‘a small but positive result’ at the start of 2021, although the pandemic still poses a significant risk to future returns, new research has revealed.
Super funds deliver slim January gains
Superannuation funds have made ‘a small but positive result’ at the start of 2021, although the pandemic still poses a significant risk to future returns, new research has revealed.
SuperRatings research showed that super funds returned members on average 0.4 per cent for both the median balanced option and median growth option.
The median capital stable option also had a positive return for members, growing by 0.1 per cent on the month.
SuperRatings highlighted that this is now the 10th straight month of gains for super funds, following a shaky start to last year when the pandemic saw markets in free fall.
The consultant's executive director Kirby Rappell said super funds have had a promising start to 2021, but the risk from the COVID-19 pandemic isn’t over yet.
“Movements in financial markets are still closely tied to how governments are managing new COVID-19 cases, as well as the timing and efficacy of vaccines. In short, we expect more ups and downs in the market, and super funds are not immune,” he said.
Despite the pandemic and economic falls, overall for the financial year, the superannuation sector has outperformed expectations, returning 9.1 per cent.
SuperRatings said current trends indicate the superannuation market is “in good health and well positioned for 2021” despite the emergence of new COVID-19 variants and rolling lockdowns that have hit most Australian states in recent weeks and months.
Overall, SuperRatings growth index has revealed median index funds have delivered a 10.8 per cent return in the financial year to date, off the back of parabolic shifts in the market in 2020.
In good news for older Australians, SuperRatings has found that pension returns have also proven stable amid market swings.
They estimated that the pension growth index has delivered an 11.9 per cent return for the financial year. However, again, this is cut to only a 2 per cent growth for the year, after the massive market movements last March.
“One thing that was reinforced in 2020 is that Australia’s superannuation system is built to withstand market storms and even pandemics,” Mr Rappell said.
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
