Leading superannuation research house SuperRatings estimates that the median balanced option generated a return of 3.0% in January, which will be welcome news for members following a disappointing 2022 calendar year.
The continued upward trajectory in interest rates remains a key challenge for the return outlook, with increasing rates either signalling economic resilience or inflationary threats expanding. The positive return pushed estimated financial year to date returns to 6.0% with five months left in the year, which demonstrates the resilience of super during the market volatility that has been experienced.
The median growth option increased by an estimated 3.4% in January, while the median capital stable option delivered a 1.8% return to members.
Accumulation returns to January 2023
| Monthly | 1 yr | 3 yrs (p.a.) |
5 yrs (p.a.) |
7 yrs (p.a.) |
10 yrs (p.a.) |
|
| SR50 Balanced (60-76) Index | 3.0% | 0.0% | 4.3% | 5.8% | 7.1% | 7.6% |
| SR50 Capital Stable (20-40) Index | 1.8% | -0.4% | 1.8% | 3.2% | 4.0% | 4.6% |
| SR50 Growth (77-90) Index | 3.4% | 0.6% | 5.1% | 6.7% | 8.2% | 8.8% |
Source: SuperRatings estimates
Pension returns also rose over January, with the median balanced pension option up an estimated 3.5%. While an increase of 3.9% was estimated for the median growth option and a more modest 2.0% for the median capital stable pension option.
Pension returns to January 2023
| Monthly | 1 yr | 3 yrs (p.a.) |
5 yrs (p.a.) |
7 yrs (p.a.) |
10 yrs (p.a.) |
|
| SR50 Balanced (60-76) Index | 3.5% | 0.2% | 4.7% | 6.3% | 7.9% | 8.3% |
| SR50 Capital Stable (20-40) Index | 2.0% | -0.4% | 2.1% | 3.5% | 4.4% | 4.9% |
| SR50 Growth (77-90) Index | 3.9% | -0.5% | 5.5% | 7.5% | 9.1% | 9.6% |
Source: SuperRatings estimates
“Funds have had a positive start to 2023 and it again underlines the way in which funds have navigated an uncertain market well overall. However, inflation remains high and the Reserve Bank’s commitment to controlling inflation means member balances are likely to see more ups and downs over the coming months.”, commented Executive Director of SuperRatings, Kirby Rappell.
Release ends
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For more information contact:
Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au
