Super on track for 10% return

WORKERS and retirees can expect a 10 per cent return on their superannuation savings this year — one of the largest returns for several years.

According to research houses SuperRatings and Chant West, the average balanced super fund nudged a return of 9.9 per cent in the 11 months to November, with December returns more than on track to tip the figure well past 10 per cent.

That compares with a 7.3 per cent return last year.

“With only a handful of trading days left in 2017, it appears certain that growth funds will finish in the black for the sixth consecutive year,” Chant West director Warren Chant said.

“Double-digit returns are in sight. That would be the best year since 2013, when we saw a remarkable 17.2 per cent.”

The strong investment returns this year have been led by surging sharemarkets.

The unexpectedly strong result defied forecasts at the start of the year, when market commentators were predicting modest returns amid warnings of ongoing economic, financial and political volatility.

“It just shows how investment markets have shut out the ‘noise’ and concentrated on the facts, which show a steadily improving global economy,” Mr West said.

SuperRatings chief Kirby Rappell said, despite several hurdles, nothing could deter the global rally across financial markets.

“Despite the mining boom fading from view, resources shares have delivered through 2017 and helped shield inves- tors from an otherwise lacklustre year for earnings,” Mr Rappell said.

Even a stronger Aussie dollar relative to the US currency did not detract from returns, he said, with record gains from the US market during the year.

Although short-term results were a good reference point, Mr Rappell said the performance of funds over the long term was a more important measure.

During the past 10 years, REST averaged the highest annual return at 6.2 per cent, followed by CareSuper at 6.1.