Superannuation funds provided double-digit returns to members in 2024 despite a negative result in December.
SuperRatings said the median balance option provided a return of 11.1%, up from 9.6% in 2023.
“Despite a post-Christmas stumble resulting in December returns falling into the red, it was full steam ahead for funds over 2024 with returns boosting member balances in 10 out of the 12 months in the year,” the ratings, research and consulting firm said.
This is consistent with the estimate by SuperRatings which said in December the median balanced option was expected to have returned 11.5% with most options above 10% and leading retirement savings providers returning more than 12.5%.
The median growth option returned -0.5% in December and 13.4% over the year, the median capital stable option returned -0.1% and 6.4% respectively and the median pension balanced option returned -0.5% and 12.3%.
International shares were the standout performer in 2024, Australian shares contributed double digit returns, returns were enhanced by property and infrastructure investments, while fixed interest and cash provided mid-single digit returns.
While funds had done well for members over the past year, conditions remained challenging and a focus on long term outcomes was required.
“With a strong double digit return for most funds, members can be reassured their retirement savings continue to grow,” SuperRatings Executive Director Kirby Rappell said.
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