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Retirement
Super funds shift from US to Chinese markets
Having driven the lion’s share of their asset growth over the last decade, Australian super funds are starting to water down their penchant for United States tech stocks in favour of higher allocations to listed equities in China that have been on a tear over the last year. However, super funds are by no means alone in their growing attraction to listed Chinese stocks, with the Shanghai Exchange Composite Index (SSE) – one of China’s three stock exchanges – rising to decade highs in August in the wake of global investors dumping U.S bonds. What’s also driving global investor diaspora out of the U.S. equities is the outperformance of Chinese equities at a ratio of two to one, which mirrors Beijing’s interventions to support the economy at the start of 2024. Bottom line is, with Chinese equities perceived to be offering better value than their U.S. counterparts, they are becoming increasingly hard for global investors to ignore. After seriously underperforming U.S, Asia, and Europe benchmarks over the past decade, fund managers in China are now hoping there’s sufficient upside in the current rally – bolstered by AI and Chinese government stimulus – for the SSE to potentially retrace November 2007 highs when it reached 5,
Retirement
Super returns solid in 2025 - Chant West
Superannuation funds have performed solidly, with median growth funds returning 7.8% so far in 2025, according to Chant West. The research, data and analytics provider said median growth funds (those with 61% to 80% in growth assets) delivered a return of 1.2% in October, which was the seventh positive month in a row. “While we’ve seen some share market jitters in November so far, Chant West estimates that with only 6 weeks of CY25 (calendar year 2025) remaining, the median growth fund return is still sitting at a solid 7.8%,” the firm said. Head of Superannuation Investment Research Mano Mohankumar said this would be a good outcome, particularly given the uncertain economic and geopolitical backdrop throughout the year, putting it ahead of the typical long-term return objective of 6%. “Super fund members should also remember that this year’s result follows two exceptional years, with returns of 9.9% in CY23 and 11.4% in CY24,” he said in a media release. The returns in October were: 1.6% for all growth funds (96%-100% in growth assets), 1.3% from high growth (81%-95%), 1.0% from balanced (41-60%) and 0.8% from conservative (21-40%). The drivers were returns from: developed international share markets of 2.6% and
Retirement
SUPER NATION: Overcoming low engagement
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. Australia has more than 27 million people, 18 million of whom have superannuation accounts with an average of $170,000 in them. Although that may seem like a lot of money, 27% of these Australians do not know who their super fund is or have ever interacted with the fund. This disturbing is from research by AMP, which found almost half of Australians checked in with the fund once or twice a year. It may help to explain why the measurement of how confident Australians are about their financial readiness for retirement is just 50 out of 100, the financial services giant said. Superannuation is, after all, the major income stream for Australian workers after they leave paid employment, along with the age pension and any savings they may have. AMP Super’s Director of Growth and Customer Solutions Julie Slapp said too many Australians were not aware of the significant help that could transform their quality of life in retirement. “Small steps – like checking your fund details or talking to your provider – can build confidence and unlock the
Retirement
Super funds return 1.3% in October
Australian superannuation funds generated a 1.3% return for median balanced options in the accumulation phase in October as Australian shares improved, according to SuperRatings estimates. The super research house said this was the seventh consecutive month of positive returns and the sixth time in the last 25 years that the first four months of the financial year had delivered positive returns. “Share markets continued to remain optimistic over October driving a good return for the month,” Director of SuperRatings Kirby Rappell said in a media release. “While international shares remain the key driver, Australian shares had a better month, and outcomes were positive across key asset classes.” The median growth option grew by an estimated 1.4% in October, while the median capital stable option grew by 0.8%. Source: SuperRatingsThe super research house said pension returns, which are tax-free, were also strong with the median balanced option increasing by an estimated by 1.4%, the median capital stable option by 0.9% and the median growth option by 1.5%. Source: SuperRatings The October 2025 result exceeded the 0.2% accumulation median balanced return in October 2024 and brought the financial year-to-date (FYTD) return
Retirement
SUPER NATION: Collapses burn trust in platforms
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. From fully compensating investors for losses to alleging fraud and defending court proceedings over alleged due diligence failures, the range of responses from investment platform trustees to the collapse of two investment funds spans widely. Irrespective of what they do and say, the trustees have been put on notice by Australia’s corporate and prudential regulators to lift their game to avoid a repeat of the First Guardian and Shield Master Fund’s failures, which cost members more than A$500 million. In early October, the Australian Prudential Regulation Authority (APRA) wrote a letter to superannuation trustees calling on them to accelerate and escalate efforts to safeguard members’ investments held in platform products. Noting a variation in practices across platform trustees, APRA called on all platform trustees to address weaknesses and accelerate efforts to lift standards. APR Deputy Chair Margaret Cole said APRA would escalate supervision intensity to ensure that appropriate steps were being taken by trustees. “We will not hesitat

Retirement
How to reduce tax under new excess super provisions
In light of plans by the Australian government to introduce additional taxes on superannuation balances above A$3 million for the 2026/27 tax year onward, Azzet (with the help of Optimum Pensions) decided to unpack how the new tax will work and alternative options for retirees with superannuation balances that place them in the highest tax bracket.How the new tax will workFirstly, let's look at the workings of the Division 296 tax proposals, now being referred to as the Better Targeted Superannuation Concessions (BTSC), measure up. Currently, earnings on pension accounts within the super environment are generally tax-free, subject to the Transfer Balance Cap when the account is first commenced. Earnings on superannuation in accumulation accounts (less deductions and franking credits) get taxed at 15%. The proposed new tax (referred to as BTSC tax) will mean an additional 15% tax is payable on superannuation earnings that are attributed to the proportion of a person’s balance over $3 million, and a further 10% tax is payable on earnings attributable to the balance in excess of $10 million. Here are two examples: one for a person with $4.5 million in super and the other for someone with $12.9 million in super on 30 June
Retirement
International shares push super return to 0.8%
Superannuation members received a 0.8% return from median growth funds in September as international shares overcame losses from Australian shares, according to Chant West. This was the sixth successive month of positive returns, the research, data and analytics provider said. Chant West estimated the median growth fund return was returning 9% in the 2025 calendar year with share markets up in October so far and despite some volatility creeping back into markets. The returns in September were: 1.2% for all growth funds (96%-100% in growth assets), 0.9% from high growth (81%-95%), 0.7% from balanced (41-60%) and 0.5% from conservative (21-40%).Source: Chant WestHead of Superannuation Investment Research Mano Mohankumar said developed international shares returned 3.3% and 2% in hedged and unhedged terms as the United States and technology sector benefitted from artificial intelligence enthusiasm. He said markers were also buoyed by the resumption of interest rate cuts by the Federal Reserve last month and solid corporate earnings. Emerging market shares outperformed developed markets, surging 5.8% on an unhedged basis, representing their strongest return in more than two years. “Australian shares underperformed wi
Retirement
SUPER NATION: Tax contortions relieve political stress
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 was a backflip of which legendary gymnast Nadia Comaneci would have been proud. After denying for more than two years that he would change the planned extra tax on high superannuation balances, Treasurer Jim Chalmers did just that on Monday. The increase in the impost on the earnings of balances above A$3 million (US$2 million) from 15% to 30% would be based on realised earnings and indexed to inflation. This addressed the outcry over trying to tax unrealised capital gains, which some had warned could force the sale of farms and businesses held in super to raise the cash to pay the additional tax. Indexing it also reduces the number of people who are caught in this net because they will now remain below the threshold. Among those who lined up on the other side of it was former Labor Prime Minister Paul Keating, one of the architects of Australia’s widely-respected mandatory and universal retirement savings system now worth $4.3 trillion. Chalmers said the Government would also introduce a second large balance threshold with a 40% r
Retirement
ASIC warns against one-size-fits-all communications
The Australian Securities & Investments Commission has put superannuation trustees on notice that they need to improve their communications with members about retirement. ASIC said many Australians lacked the information needed to make confident and informed decisions about retirement after a review identified a lack of urgency in improving retirement communications among trustees. The review From superficial to super engaged: Better practices for trustee retirement communications found that some trustees offered one-size-fits-all retirement communications aimed primarily at pre-retirees, missing opportunities to engage with members throughout retirement and provide more meaningful support. ASIC Commissioner Simone Constant said that despite the retirement income covenant obligations commencing over three years ago, some trustees were yet to address gaps identified by ASIC and the Australian Prudential Regulation Authority. She said a uniform communications approach would not work as it may not provide the quality of information customers needed to make confident and informed decisions about retirement. “It is important now more than ever for superannuation trustees to focus their attention on providing meaningful,