Australian super funds deliver record growth returns in 2025-26
Consensus Summary
Australian super funds delivered another stellar year in 2025-26, marking the fourth consecutive year of returns above 9 per cent, a rare feat in superannuation history. Median returns for growth funds reached 9.5 per cent in accumulation phase and 10.8 per cent in pension phase, with Unisuper leading the pack at 12.3 per cent and 13.1 per cent respectively. Over the past four years, cumulative returns hit 44 per cent, far exceeding long-term expectations. While these results are impressive, experts caution against relying on such high returns for planning, noting that the typical objective for growth funds is to beat inflation by 3.5 per cent, or roughly 6 per cent annually. Historical data shows super funds have averaged 8 per cent returns since compulsory super began, with a real return of 5.3 per cent after accounting for inflation. Analysts also highlight that past performance does not guarantee future results, with forecasts from Vanguard and J.P. Morgan suggesting US shares may deliver only 4 to 6.7 per cent annually in the coming years. The articles emphasize the importance of setting guardrails for retirement spending based on long-term expectations rather than short-term gains.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Median one-year returns for growth super funds in FY26 were 9.5 per cent for accumulation phase and 10.8 per cent for pension phase
- Unisuper was the top-performing growth fund for the last year, delivering 12.3 per cent on accumulation and 13.1 per cent on pension
- NGS Super Diversified and CFS Firstchoice Growth Fund tied for second place with 11.5 per cent returns on accumulation and 12.4 per cent on pension
- Hostplus Balanced Fund was third in accumulation with 10.8 per cent returns
- AMP Balanced fund was third in retirement phase with 11.9 per cent returns
- Growth funds in accumulation phase provided median returns of 44 per cent on a cumulative basis over the past four years
- Four years in a row with returns above 9 per cent has been seen only once before in superannuation history (2004-07)
- The typical long-term return objective for growth funds is to beat inflation by 3.5 per cent per year, translating to roughly 6 per cent a year on average
- Since the introduction of compulsory super, the annualised return is 8 per cent and the annual CPI increase is 2.7 per cent, giving a real return of 5.3 per cent a year
- Over the past 20 years, super funds have returned 6.9 per cent a year despite three major market downturns (GFC 2007-09, COVID-19 2020, and 2022 high inflation)
- Inflation was at 4 per cent in May 2026
- The RBA target for inflation is 2 per cent to 2.5 per cent
- Vanguard forecasts US shares will manage 4 to 5 per cent a year over the next five to 10 years
- J.P. Morgan forecasts US shares will return 6.7 per cent over 10 to 15 years
- Best-performing growth funds over the past 10 years in accumulation phase: Hostplus Balanced Fund (8.9 per cent), Brighter Super (8.8 per cent), Australian Retirement Trust (8.7 per cent)
- Best-performing growth funds over the past 10 years in retirement phase: Hostplus (10.1 per cent), CSC Aggressive (9.9 per cent), Brighter Super Balanced Fund (9.8 per cent)
Points of Difference
Details reported by only one source:
- The article mentions median admin fees for pension phase funds across the growth category: 0.26 per cent for a $250,000 balance and 0.23 per cent for a $500,000 balance
- The article mentions median admin fees for accumulation funds: 0.25 per cent for a $250,000 balance and 0.21 per cent for a $500,000 balance
Contradictions
Conflicting information between sources:
- No contradictions found between the two sources
Source Articles
Super funds just delivered another stellar year. Is yours one of the best?
A good one-off return is great, but the real picture can be gained only by looking at the long run, say, performance over 10 years.
Super funds just delivered another stellar year. Is yours one of the best?
A good one-off return is great, but the real picture can be gained only by looking at the long run, say, performance over 10 years.