News and Reviews
Millions of Aussies Gain Big From Surprising Super Fund Performance

Millions of Aussies Gain Big From Surprising Super Fund Performance
By Ian Rogers
Millions of Australians are reaping unexpected rewards from their superannuation funds in 2024, thanks to a surprising surge in global share markets. Many super members are thousands of dollars better off without even realising it, as median growth funds post impressive gains.
Super Funds Shine in 2024
According to Chant West, the median growth fund – comprising 61-80% in growth assets – has delivered a 10.3% return year-to-date, well above the typical long-term target of 6%.
What This Means for Members:
- Male Example: A 44–49-year-old man with an average super balance could see their fund grow by $24,432, even without contributing extra.
- Female Example: A woman in the same age group could gain $16,284, highlighting the power of compounded returns.
“Super fund members in higher-risk portfolios fared even better, benefitting from the strength of global share markets,” said Mano Mohankumar, Senior Investment Research Manager at Chant West.
October: A Mixed Month
While October saw declines in both shares and bonds, super funds managed to post flat returns, thanks to a 3.9% boost from unhedged assets driven by the Australian dollar’s fall.
Key factors influencing performance included:
- US Election Anxiety: Market jitters around the US presidential race dampened returns in October.
- Interest Rate Movements: The US Federal Reserve’s smaller-than-expected 0.25% rate cut calmed markets but tempered expectations for further reductions.
A Strong Year Overall
2024 is shaping up to be a standout year for super funds, following a better-than-expected return of 9.9% in 2023.
“If funds maintain this momentum, it would be a tremendous outcome for super members,” Mohankumar said.
Super: A Long-Term Game
Since the introduction of compulsory super in 1992, the median growth fund has achieved an average return of 8% per annum, outpacing inflation at 2.7%. This translates to a real return of 5.3%, well above the target range of 3.5%.
Even over the past 20 years – which included major economic downturns like:
- The Global Financial Crisis (2007–2009)
- The COVID-19 Pandemic (2020)
- High Inflation and Rising Interest Rates (2022)
Super funds still delivered 7.2% per annum, comfortably exceeding expectations.
What Should Members Do?
Mr. Mohankumar reminded Australians of the importance of focusing on long-term outcomes:
“Superannuation is a long-term proposition. While there will be ups and downs, the system’s strong historic performance speaks for itself.”
Key Takeaways
- Significant Growth: Median growth funds are on track for a stellar year, boosting Australians’ super balances.
- Currency Boost: The falling Australian dollar provided a surprising tailwind for unhedged assets in October.
- Steady Over Time: Despite short-term volatility, super funds have consistently delivered strong long-term returns.
With rate cuts potentially on the horizon in 2025, the outlook for super fund performance remains optimistic. Members are encouraged to stay invested and focus on long-term growth to secure their financial future.
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