Returns have been nothing but super

❝ These results make a case for adding to your super.

IN the next few weeks your super fund statement should arrive in the mail, and chances are it will make for good reading.

Australians with superannuation are collectively $140 billion better off thanks to strong returns earned by the nation’s super funds in the past financial year.

Research by SuperRatings found the average “balanced” super fund had gains of 10.4% in the past 12 months – the eighth consecutive year that super has dished up positive returns.

The good news doesn’t stop there.

In the past five years super funds have averaged earnings of 10% annually, with total earnings of more than 100% since the end of the global financial crisis (GFC) in 2009.

If you had $100,000 invested in a balanced super fund back in late 2007, that nest egg would have grown to about $152,626 today.

And that’s just based on investment returns – it doesn’t include any contributions made over the period.

Super funds have recorded negative returns in just three out of the past 25 years.

Only one year – 2008-09 – recorded serious losses of 12.7% but this was at the height of the GFC when asset markets tanked.

Past returns are no guide for the future, however these results make a compelling case for adding to your super.

Sure, the boss may be making super contributions worth 9.5% of your base wage or salary, but this may not be enough for the sort of retirement you’d like to enjoy.

Industry body ASFA says employer contributions would need to be set at 12% of wages for Australians to achieve adequate retirement incomes.

Adding to your super is easy. With many of us due to receive a tax refund over the coming weeks, tipping this windfall into your fund can mean enjoying far more bang for the tax man’s buck thanks to compounding returns and super’s low-tax environment.

If you haven’t previously made a personal contribution to super, check with your fund how it should be done.

In most cases contributions can be made online using BPAY or electronic funds transfer.

Take a look too at the fees you’re paying, whether you have insurance in your fund and if the cover is right for you, and that the investment strategy meets your needs.