‘A big year for super’: 2021 delivers windfall for super funds

2021 was a big year for superannuation fund performance with results indicating members are expected to receive a windfall of over $400 billion.

Leading research house SuperRatings found most median “balanced” options saw a return of 13.4% for the year 2021 and positive returns in 11 out of 12 months. This year’s estimated return would be the 6th highest since 2000, driven by international and Australian shares, with property also supporting the growth in balances.

Hostplus – Balanced was the top performer for 2021, returning 19.1 per cent. Followed by QANTAS Super Gateway – Growth and Sunsuper for Life – Balanced whose balanced options returned 18.5 per cent and 16.5 per cent respectively.

Executive Director of SuperRatings, Kirby Rappell said “it has been a big year for super”.

“If we look at the long term, funds continue to perform well against objectives, but it is likely to be a rockier year ahead. For consumers, it remains important to set your strategy, stick to it for the long term and future you will likely thank you,” he said.

“In the past, we typically found that the performance of sustainable options tended to sit materially below standard balanced options. However, in recent years we have seen a shift, with sustainable balanced options performing competitively relative to standard balanced options.”

SuperRatings suggested consumers should take a look at the super funds given the recent volatility following the uncertainty Covid-19 has caused for investments markets.

Rappell said the start of the year “is a good time to do a health check on your fund”.

“With stapling changes taking effect late last year, your fund will now follow you when you change employers, so it’s time to make sure you are in a good one. While all super funds have good years and those that are more challenging, strong long term performance remains the main game for members,” he said.

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