Most funds posted positive returns as super balances grew
Australians’ super balances grew again in the 2025/26 financial year, with most super funds delivering positive returns despite ongoing market volatility.
Ongoing contributions also lifted retirement savings during 2025/26. As a result, Australia’s super pool reached about $4.5 trillion, making it one of the largest in the world.
According to Aware Super, resilient investment strategies and diversified portfolios helped most funds keep members’ savings growing in real terms.
Michael Winchester, Aware Super’s head of investment strategy, said returns in diversified options have continued to outpace inflation over the long term. “The good news is that for most Australians in diversified options, super returns have continued to outpace inflation over the long term. And with another year of positive returns, members are continuing to make real progress with their retirement savings,” he said.
Aware Super modelling
Aware Super modelling shows investment returns are expected to make up around 50% of the super balance at retirement for a typical young female member.
Members invested in Aware Super’s Conservative Balanced retirement option can receive around 35% more income from super than from a standard bank account, according to the fund.
That 35% gap reflects extra earnings on invested savings during retirement, rather than leaving the money in cash.
Winchester said super funds stayed focused on long-term outcomes through global market volatility and shifting economic conditions in 2025/26.
He pointed to continued investment in infrastructure, energy and housing as part of that strategy.
“Strong long-term strategies have helped Australia’s super pool grow to around $4.5 trillion – one of the largest in the world,” Winchester said.
On 16 July 2026, Aware Super also highlighted that a 25-year-old member and a person nearing retirement need different investment mixes.
Because of that difference, Aware Super uses a lifecycle design that adjusts growth and risk settings over time for each life stage.
Unlike traditional options, lifecycle investing changes the mix as members age instead of investing every member the same way.
Winchester said short-term returns will always vary, but the long-term pattern has been steady growth supported by compulsory contributions and invested returns.
