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Retirement
SMSFs outperform APRA funds long term, research finds
Self-managed superannuation funds (SMSFs) have delivered higher long-term returns than regulated super funds, according to new research. The SMSF Association said research from Adelaide University’s International Centre for Financial Services (ICFS) showed SMSFs outperformed funds regulated by the Australian Prudential Regulator Authority (APRA) by 1.1% in the five years to 30 June 2024. The research was a joint venture with the SMSF Association, which said the findings were similar for the five years to 30 June 2023, when SMSFs outperformed by 1.2%, demonstrating a pattern of sustained performance. SMSF Association Chief Executive Officer Peter Burgess said the research demonstrated the long-term strength and resilience of the A$1.05 trillion SMSF sector. “SMSFs remain a compelling option when they are used under the right circumstances and managed effectively,” he said in a media release. A SMSF could be a highly effective structure, particularly when supported by specialist professional advice, for Australians seeking greater flexibility, control over investment decisions, estate planning advantages, and the ability to tailor strategies to their individual circumstances. But SMSFs were not for everyone, and it
Retirement
Super returns uncertain in FY26 – SuperRatings
The outlook for returns from Australian superannuation funds this financial year is uncertain after falls in March and despite respectable outcomes to the end of February, according to SuperRatings. The superannuation research house estimated the median balanced option generated a return of 1.1% in February, despite the Reserve Bank of Australia raising interest rates at the start of the month, and 6.3% in the 2026 financial year (FY26). “However, with events currently occurring in the Middle East and inflation expectations pointing towards the potential of further rate increases, funds are likely to have an uncertain path towards the end of FY26,” SuperRatings said in a media release. The median growth option rose by an estimated 1.2% in February, while the capital stable option was estimated to have delivered 0.8% to members, giving them financial year to date (FYTD) returns of 7.3% and 4.0% respectively.Source: SuperRatingsPension members benefited from the tax concessions with the median and growth options returning 1.3% in February, lifting the FYTD returns to 7.2% and 8.1% respectively, and the capital stable option delivering 0.9% in January (4.5%). “We have already seen significant movement in share markets ove
Retirement
Greens help Australian super tax change to become law
The Australian Government’s plans to increase the taxation rate on superannuation accounts with high balances will become law after the Australian Greens agreed to support it in the Senate. The minority party said it would back the ruling Australian Labor Party’s Superannuation (Building a Stronger and Fairer Super System) Bill 2026 in the upper house, allowing the legislation to pass. “We are going to support the bill as a down payment on genuine, progressive tax reform in this budget. This budget is a once‑in‑a‑generation opportunity for ambitious tax reform, and we’re opening the door for Labor to walk through,” Greens economic justice spokesperson Nick McKim said in a statement: The approved change lifts the tax rate on earnings on super account balances above $3 million (US$2.1 million) from 15% to 30% and on balances over $10 million to 40%, but applies only to realised earnings, and the thresholds will be indexed to inflation. But it maintains the concessional treatment of super, which is taxed at 15% during the accumulation phase rather than higher marginal rates for most Australians. Labor backed down from applying the change to unrealised gains after strong opposition and added the higher balance change.
Retirement
SUPER NATION: Funds urged to prepare for wave of grey
Super Nation is a fortnightly column that examines, explains and analyses key issues in one of Australia's largest, fastest-growing and most important industries: superannuation. It’s being called a silver tsunami and super funds are being urged to prepare for it. More than 2.5 million Australians are expected to retire in the next decade, according to the Australian Government. This was out of 23.3 million member accounts across superannuation funds regulated by the Australian Prudential Regulation Authority (APRA) at 30 June 2025. They also represent about one in nine Aussies. These prospective retirees hold an estimated A$1.5 trillion (US$1.05 trillion) in super, or 11% of Australia’s $4.5 trillion in retirement assets, although they represent significantly less than this proportion of members and accounts. They are from the final wave of the wealthy and much-maligned Baby Boomer generation (born1946 to 1964) and early members of Generation X (1965-1980) This supposedly grey-haired cohort will move from the accumulation phase, during which their balances are rising, to the pension or deaccumulation phase, when they draw down on their retirement balances over the next 10 years. Regulators have increased t
Retirement
Australian super assets hit record $4.49 trillion
The value of Australian superannuation funds rose by 8.1% in the 12 months ended 31 December 2025 to a record A$4.49 trillion (US$3.19 trillion), according to data from the Australian Prudential Regulation Authority (APRA). APRA was releasing its Quarterly Superannuation Performance publication for the December 2025 quarter, which showed sector assets had grown from $4.15 trillion at 31 December 2024 and $4.47 trillion at 30 September 2025.Source: APRAThe regulator said in a statement that the increase in assets was driven by a 9.1% rise in APRA-regulated assets to $3.18 trillion, with self-managed superannuation (SMSF) assets rising 6.0% to $1.06 trillion. Among the APRA-regulated assets, retail funds showed the most growth in assets across the year, rising 10.5% to $891.0 billion, just outpacing industry funds (10.4% to $1.64 billion) and public sector funds (6.0% to $608.2 billion), while corporate fund assets fell 19.4% to $37.5 billion. But in the December quarter, industry funds outpaced the others with growth of 1.3% compared with retail (0.8%) and public sector (0.2%), while corporate funds showed no asset growth. Total contributions increased by 11.5% to $220.8 billion in 2025, of which employer contributions

Retirement
Comfortable super retirement balance hits record
The superannuation balance that Australians need for a comfortable retirement has increased for the first time in three years to record highs, according to the Association of Superannuation Funds of Australia (ASFA). ASFA said the super balance needed for homeowners aged 67 to fund a comfortable retirement was A$630,000 (US$445,000) for single people, up from $595,000, and $730,000 for couples (up from $690,000), according to ASFA’s quarterly Retirement Standard. The lump sums required for a modest retirement had increased to $110,000 for singles and $120,000 for couples, up from $100,000 for both. Chief Executive Officer Mary Delahunty said the rise in lump sum benchmarks reflected greater pressures from living expenses on retirees’ super savings, but the overall picture for retirement outcomes remained positive. “Retirees’ living costs have risen, and support from the Age Pension has not kept pace with this rise. This means retirees need higher super savings to maintain a comfortable lifestyle,” she said in a media release. “The good news is that Australians are reaching retirement with larger super balances than ever before. The super system is working really well, securing Australians’ retirements.” A 30-year
Retirement
Super funds returned 0.4% in January - Chant West
Superannuation investments defied market volatility to deliver a return of 0.4% from median growth funds in January, according to Chant West. This lifted the return over the first seven months of the financial year to 5.4%, the research, data and analytics provider said in a media release. “During the month, we saw heightened geopolitical risks including U.S. military action in Venezuela and renewed tariff threats against Europe in relation to Greenland, which were subsequently withdrawn,” Head of Superannuation Investment Research Mano Mohankumar said. “However, markets focused on the global economic backdrop that still remains positive and expectations of continued earnings growth.” The returns from all growth, high growth and balanced funds was 0.5% in the first month of the calendar year, raising the financial-year-to-date returns to 7.2%, 6.3% and 4.3%, while the one-month and seven-month returns from conservative funds were 0.4% and 3.0%. International developed shares rose 1.7% in hedged terms in January, but the sharp appreciation of the Australian dollar against the U.S. dollar turned that into a loss of 2.7% in unhedged terms. On average, super funds have about 70% of their international shares exposure
Retirement
Urge to merge drives super industry consolidation
Australian Retirement Trust (ART) seems to have perfected the art (no pun intended) of mergers in the superannuation industry. Australia’s second-largest super fund, with A$330 billion (US$236 billion) under management (FUM) for 2.4 million members, completed seven of them between 2022 and 2024. But it was not alone in driving consolidation of the the $4.3 trillion retirement savings sector through waves of mergers. Known in industry parlance as successor fund transfers (SFTs), mergers have transformed the sector, with the number of funds halving since 2010 to about 90. Once there were hundreds regulated by the Australian Prudential Regulation Authority (APRA), but in the five years to October 2025, the number fell from 158 to 87, according to APRA. “The big are getting bigger and the small are getting smaller,” Deloitte Australia Actuarial Consulting Partner Andrew Boal said. In the five years to June 2025, the top five funds increased their share of super guarantee contributions (SGC) and member accounts faster than their share of net assets, while those outside the top 10 saw their share decline, according to APRA. “While declining market share is not a concern in isolation, it highlights increasing competi
Retirement
ASX investment rotation favours golds, small caps
Investment performance from growth strategies lagged in 2025 as investors rotated away from structural growth stocks and toward resources and value-oriented stocks, according to Lonsec. The research and financial services firm said small capitalisation companies delivered excellent returns, with the S&P/ASX Small Ordinaries Index rising 24.96% last year. “Small caps finally had their day in the sun,” Director of Research Peter Green said in a media release. Green said gold miners also stood out as they benefited from a 65% increase in the spot gold price. Green said the technology and healthcare sectors contracted by 19.1% and 23.9%, respectively, while resources and materials delivered impressive gains of 36.2% and 37.5%, significantly affecting growth managers’ relative performance. “We saw a clear shift in market leadership this year,” Green said. The firm released a new analysis of Australian equity market performance in 2025, which highlighted a challenging period for growth strategies, strong dispersion among active managers, and renewed momentum in the small‑cap sector. “The findings also point to meaningful structural shifts driven by superannuation fund flows and the continued rise of passive investin