As we step into the new year, the golden days of 2024—when super funds were flourishing and retirees found themselves with more to spend—might be taking a turn.
Experts are now sounding the alarm that 2025 may not be as generous when it comes to superannuation returns.
For the average 50-year-old, whose super fund balance hovers around $165,000, the past year was a time of celebration.
Balanced option super funds, which lean heavily on growth areas like shares, brought in $18,000 last year. Likewise, for retirees with an average pension balance of $320,000 invested in a conservative option, the earnings were even more impressive at $22,000.
One standout performer was Colonial First State Super, which saw one of its funds return more than 16 per cent.
‘The areas that we’ve been looking to diversify our equity exposure into areas like smaller companies, emerging markets, and we’ve also been looking at a wider range of investments within fixed income,’ said Jonathan Armitage, the chief investment officer at Colonial First State.
However, the financial forecast for 2025 is looking less sunny.
Kirby Rappell, CEO of SuperRatings, warns, ‘It’s going to be potentially a bit harder outlook this year. I think we’re going to see more ups and downs, and people don’t generally like that, but I think that’ll be the reality.’
Rappell predicts that returns might revert to the long-term average of around 7 per cent. This could mean a significant drop in earnings for individuals.

For a 50-year-old in a balanced fund, this could translate to an $8,000 decrease in returns compared to last year. Meanwhile, those in a conservative option fund might see a $4,500 drop in their 2024 returns.
Reflecting on the past decade, the top three performing balanced options have been Hostplus (8.4 per cent), Australian Retirement Trust (8.3 per cent), and Australian Super (8.1 per cent).
For retirees, the leading funds were First Super (6.3 per cent), Emergency Services and State Super (5.9 per cent), and CSC Retirement Income (5.7 per cent).
This serves as a reminder that the market is ever-changing, and what worked yesterday may not work tomorrow so it’s crucial to stay informed and possibly consider seeking personal financial advice tailored to your specific circumstances.
Have you experienced fluctuations in your super fund returns? How are you preparing for the potential downturn in 2025? Share your thoughts and strategies with us in the comments below. Your insights could be invaluable to fellow YourLifeChoices readers.
Also read: $4.1 trillion superannuation industry to get a ‘long overdue’ shake-up
Is it possible to list all registered super funds and what their returns (%) were last year. I am not in a Major Fund.
I am in the REI Super Fund and would like to know how they compare with other funds.