After a small positive result in April, leading superannuation research house SuperRatings estimates that the median balanced option returned 2.6% to members over May.
“As we approach the end of the financial year, we see that investors seem to be able to look past tariff uncertainty. Following the positive month, it appears funds are back on track for a strong financial year result, despite the noise and uncertainty. While this will likely be a relief for members, we can see that volatility is likely to remain for some time.” commented Kirby Rappell, Executive Director of SuperRatings.
The median growth option grew by an estimated 3.1% for the month, while the median capital stable option, rose by a more modest 1.1%.
Accumulation returns to 31 May 2025
| Monthly | FYTD | 1 yr | 3 yrs (p.a.) | 5 yrs (p.a) | 7 yrs (p.a.) | 10 yrs (p.a.) | |
|---|---|---|---|---|---|---|---|
| SR50 Balanced (60-76) Index | 2.6% | 8.6% | 9.4% | 7.6% | 8.3% | 6.9% | 6.6% |
| SR50 Capital Stable (20-40) Index | 1.1% | 6.3% | 7.0% | 7.0% | 4.5% | 4.1% | 4.2% |
| SR50 Growth (77-90) Index | 3.1% | 9.4% | 10.5% | 8.8% | 9.7% | 8.0% | 7.7% |
Pension returns also recovered strongly, with the median balanced pension option increasing by an estimated 2.9%. The median capital stable pension option is estimated to rise 1.2% over the month, while the median growth pension option is estimated to rise 3.5% for the same period.
Pension returns to 31 May 2025
| Monthly | FYTD | 1 yr | 3 yrs (p.a.) | 5 yrs (p.a) | 7 yrs (p.a.) | 10 yrs (p.a.) | |
|---|---|---|---|---|---|---|---|
| SR50 Balanced (60-76) Index | 2.9% | 9.8% | 10.6% | 8.4% | 9.1% | 7.7% | 7.4% |
| SR50 Capital Stable (20-40) Index | 1.2% | 7.0% | 7.6% | 5.5% | 5.0% | 4.5% | 4.7% |
| SR50 Growth (77-90) Index | 3.5% | 10.8% | 11.9% | 9.6% | 10.7% | 8.8% | 8.5% |
While funds have regained ground over May, the recent volatility in markets is a timely reminder for members to focus on the long term. A member that switched into a Cash option following the March downturn would have missed out on the strong rebound over May. While the run up to the end of financial year looks relatively stable, the tariff pause is set to end shortly thereafter, and we still expect fund returns will experience ups and downs over the coming months.
“Funds are now on track to deliver mid to high single digit returns for the financial year, with more growth focused options potentially reaching double digits if we see current momentum carry through June”, continued Mr Rappell. “However, as we saw a few months ago, markets can change quickly, and we encourage members to remember that superannuation is a long-term investment.”
Release ends
We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.
For more information contact:
Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au
Require further information? Simply visit www.superratings.com.au.
