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Retirement
Bounce demonstrates virtue of patience -- Chant West
A sharemarket rally in April which lifted superannuation fund returns to 6% this financial year (FY26) was a reminder to stay patient, according to Chant West. The research, data and analytics provider said the average median growth fund (61–80% invested in growth assets) had fallen 3.2% in March due to the United States-Iran conflict and renewed concerns about interest rates amid rising inflation. However share markets had since rallied strongly with the same fund estimated to be up 3.1% so far in April.Credit: Chant West“That almost entirely offsets the March decline and brings the estimated median return over FY26 up to 6%, with about 10 weeks of the financial year remaining,” Chant West said. Head of Superannuation Investment Research Mano Mohankumar said the April rally had been on the back of optimism around a potential de-escalation in Middle East tensions, easing oil prices and solid corporate earnings. “The experience since the start of March is another clear reminder of why it’s important for super fund members to stay patient and maintain a long‑term perspective,” he said. “Members who panicked after seeing their balances fall in March and switched to lower‑risk options or cash not only crystallised paper
Retirement
SUPER NATION: Unfair plan singled out in reform flurry
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. Among the broad raft of reforms to the superannuation system proposed by the Australian Government in a flurry of activity, one stands out as the most controversial. The Government is asking stakeholders if self-managed super funds (SMSFs) should contribute to the nearly out-of-control Compensation Scheme of Last Resort (CSLR). That much is obvious from initial responses to the three different papers on the Treasury website, which were released on the same day ahead of a six‑week consultation period ending on 22 May 2026. Looming large in the background is the collapse of the Shield and First Guardian master funds, which cost more than 11,000 consumers $1 billion-plus in retirement savings and are cited as the catalyst for this regulatory action.Comprehensive packageAssistant Treasurer and Minister for Financial Services Daniel Mulino said the failures had highlighted the need for a comprehensive reform package. “This includes protecting consumers as they are navigating the superannuation system, tackling high‑pressure sales tactics like le
Retirement
War decimates super returns in March
Superannuation fund balances plunged in March as the war in Iran and the disruption to oil supplies erased returns since September and reduced them in the financial-year-to-date (FYTD), according to SuperRatings. The superannuation research house estimated the balance of a median balanced fund in accumulation phase fell by 3.2% in March, reducing the FYTD return to 2.8%, while the median growth and the capital stable options dropped by 4.1% and 1.8% respectively, pushing down the cumulative returns to 3.0% and 2.1% respectively.Source: SuperRatings“With just one quarter remaining in the financial year, the pathway for funds to once again outperform their long-term average is narrowing, with returns confronting elevated levels of uncertainty across both global and domestic markets,” SuperRatings Director Kirby Rappell said in a media release. “Markets are responding quickly to a rapidly evolving situation. This means we are likely in a period of greater volatility. While this will flow through to balances, it should be remembered that member’s super is usually invested across a range of asset classes (not just shares) and that over the long term, super returns remain sound.” Pension fund members also suffered with median,
Retirement
SUPER NATION: Peak bodies squabble over switching data
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. An unspoken détente in super may have ended in recent weeks as differences between rival peak super bodies are made public. A hint of it came with media coverage suggesting not everybody was happy with the formation of a new group bringing the industry closer to the members of Parliament who make the laws that govern this sector. But it has widened with one organisation accusing another of providing “misleading” and “flawed” data as the spectre was raised of the collapse of the Shield and First Guardian master funds which cost 11,000 people more than A$1 billion (US$685 million).Feeling left outA gossip column article in the Australian Financial Review (AFR) with the headline ‘Industry super’s Mean Girls club’ talked about dissatisfaction with the launch party for the Parliamentary Friends of Super, which is sponsored by Super Members Council. The newspaper claimed the invitation list was dominated by SMC’s industry super fund members, with retail funds, self-managed super funds (SMSFs) and platforms left “out in the cold”. Each one is of s
Retirement
Long term focus urged as war hits super fund returns
Superannuation fund members should see short-term falls in returns due to the Middle East war in the context of the long-term nature of super, according to Chant West. Funds delivered a positive return in February with the median growth fund (61–80% invested in growth assets) gaining 1.1% for the month, but markets have since come under pressure. Share markets had fallen in response to the escalation of the United States and Israeli conflict with Iran in early March, which pushed oil prices higher and raised interest rate concerns amid rising inflation. The research, data and analytics provider estimated the median growth fund was down 3.8% so far in March, reducing the financial-year-to-date (FYTD) return to about 2.5%.Source: Chant WestHead of Superannuation Investment Research Mano Mohankumar said it was important for fund members to see short-term movements in context during periods of volatility. “It’s critical for members to keep in mind that super is a long-term investment and there will inevitably be periods of market weakness through their super journey,” he said in a media release. “While we recognise that members have different levels of comfort when their balance goes backwards, the majority can afford t

Retirement
The ageing boom property investors can’t ignore
While property investors tend to fixate on key indicators like location, capital growth, and rental yield, the demographic shift that’s quietly reshaping Australia’s housing demand is often overlooked. There’s no shortage of data to demonstrate why smart investors are tapping into a rich vein of opportunities associated with understanding how older Australians are living, downsizing, relocating, or renting to get a competitive edge. First, let’s look at what the numbers are telling us.Australia’s Ageing Profile: Facts and FiguresWhile recent estimates suggest that around 17% of Australia’s population is aged 65 years and over, projections suggest this will exceed 20% by the 2060s. To put that number into perspective, today one in six Australians are now aged 65-plus, whereas mid-20th century this ratio was around one in every 14. Based on government data, over the past 50 years, life expectancy rose by 13.7 years for males and 11.2 years for females. Unsurprisingly, people aged 55 and over account for a disproportionate amount the country’s personal wealth. While these demographics have far reaching implications for their future housing needs, the rapid rise in the cohort 85-plus – which could more than double wi
Retirement
SUPER NATION: Members urged to think before they switch
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. A nurse responds to a Facebook advertisement urging her to switch her superannuation from a large and well-performing industry fund into a self-managed super fund (SMSF). Promised by a sales agent that the returns from the SMSF would be higher, she believes this will allow her to pay off her mortgage and have enough for retirement after a lifetime of dedicated service. The hard-working frontline health worker agrees to make the switch but discovers her savings have been invested in a property fund that is ultimately frozen, according to SMSF specialist Liam Shorte, who is relating the sad story. “So she’s looking a loss over $405,000,” he told Azzet. Shorte, a financial planner with Sonas Wealth, said younger people in particular were vulnerable to social media posts from lead generators who pass on the details of suitable prospects to financial advisers, investment firms and others. It was a pattern made familiar in the $1 billion collapse of the Shield and First Guardian master funds. In fact, many people invested in Shield and Firs
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