Canstar's 2026 Account Based Pension Awards
About the Account Based Pension Awards
Canstar's 2026 Account Based Pension Awards recognise the providers that have delivered outstanding value for account based pensions (also known as retirement income accounts). We looked at:
- Each investment option's returns over seven years after fees.
- What features are on offer that support members in retirement.
- Each provider's best option for every risk profile (Cash, Conservative, Moderate, Balanced, and Growth) and compared it with the rest of the market.
An account based pension lets you turn your super into a regular income stream when you retire. Rather than taking your super out as a lump sum, you move it into an account that pays you an income while the balance stays invested.
Your fund might call it a retirement income account, choice income, an allocated pension, or simply a pension account, but they all work the same way. You choose how your money is invested, your balance rises and falls with your investments, and each year you must withdraw a minimum amount set by the government—4% of your balance if you're under 65, rising as you get older. You can move up to your transfer balance cap ($2.1 million for retirement income schemes started after 1 July, 2026) into a pension account, where investment earnings are tax-free, as is the income you receive from super after you turn 60.
The catch is that the income isn't guaranteed and isn't for life: the account stops paying once the money runs out. How much you receive over a 20- or 30-year retirement comes down to how well your money is invested and how much you lose in fees along the way. That's why these Awards weigh returns after fees so heavily, and why we look at seven years of performance across every profile rather than one good year for one option.
Learn more about our Award process in our methodology.
2026 Winners
Account Based Pensions
Numbers crunched
The market this year
How the year went
It was another solid year for pension members, though performance wasn't quite at 2025 levels. Across the 183 options we assessed from 1 July, 2025 - 30 June, 2026, the pattern was straightforward: the more held in shares, the better the investments did.
| Profile | Median return, year to 30 June, 2026 |
|---|---|
| Growth | 11% |
| Balanced | 9.5% |
| Moderate | 8% |
| Conservative | 6% |
| Cash | 4% |
Even so, 174 of the 183 options returned less than they did last year.
Index options led the field
The three strongest Balanced options were all low-cost index options: MLC's Low Cost Balanced grew 12.2%, Hostplus's Indexed Balanced grew 12% and Australian Retirement Trust's Balanced Index grew 11.5%. Each invests its growth assets entirely in the sharemarket, so captured the year's rally in full.
Many funds' flagship actively managed options went the other way. They hold sizable amounts in unlisted assets such as private property and infrastructure which had a weaker year, holding their results back.
A stronger dollar widened the gap
Currency was the other divider. Options that protected their overseas shareholdings against currency movements, a practice known as hedging, returned around eight percentage points more than those that didn't.
Between them, these two factors explain why Balanced returns were spread so far apart this year, from 3.1% at the bottom to 12.2% at the top.
Lower-risk options had a good year too
The RBA cut the cash rate in August 2025, then lifted it three times between February and May 2026 to 4.35%. That made for a better year at the cautious end of the market: cash options returned around 4% to 4.5%, and most conservative options landed between 5% and 8%.
"The Balanced options that came out on top this year were the low-cost index options that rode the sharemarket rally, while many funds' flagship options with big holdings in unlisted assets had a quieter year," says Fin Valentine, Research Analyst at Canstar. "But these Awards are built on seven years of returns after fees across every profile, not one strong year. The five winners are there because they've delivered consistently for members at every risk level – and kept a lid on fees while doing it."
About the Winners
(Winners are listed alphabetically within each category.)
Outstanding Value – Account Based Pensions
Australian Retirement Trust
Australian Retirement Trust has retained its Award in 2026, again delivering consistent performance across all five investment profiles. Its High Growth option returned 10.2% a year over our seven year observation period—one of the strongest results for a Growth profile. Admin fees are capped once your balance reaches a set amount, which keeps costs down for members with larger balances.
AustralianSuper
AustralianSuper, Australia's largest super fund, has retained its Award for the ninth year in a row, with performance improving across most investment profiles this year. Its High Growth option averaged 9.7% growth a year over the seven years to 30 June, 2026. Almost 60% of the fund's portfolio is now run by its own investment teams across Australia, London, New York, and Beijing. Members who want more choice can also use its Member Direct option to hold ASX 300 shares, ETFs, and listed investment companies directly, or park part of their balance in a term deposit, with 90-day, 180-day, and one-year terms available from two different banks.
Brighter Super
Brighter Super has retained its Award for 2026 on the strength of its investment performance, ranking among the leaders for all assessed profiles over seven years. Members aged 50 and over can also book a retirement readiness check with one of the fund's advisers, by phone or video call. Beyond that there's a solid set of extra features: Calculators covering retirement income, salary sacrifice and insurance needs, a risk profiler to help work out an appropriate investment mix, and webinars on retirement planning run across the year.
Hostplus
Hostplus has retained its Award this year, again pairing strong investment performance with one of the lowest admin fees of any fund assessed. Its admin fee is a flat dollar amount rather than a percentage of your balance, so it doesn't grow with your account. Pension members also get one of the widest ranges of ready-made options—sixteen in all, spanning six risk levels from defensive through to high growth, with actively managed and low-cost indexed versions of each, plus three socially conscious choices.
MLC Super Fund
MLC Super Fund has retained its Award with competitive performance in 2026, particularly in the Balanced and Growth profiles, along with low-cost options across several profiles. Its Low Cost Balanced option delivered the highest one-year return of any Balanced option assessed—12.2% for the year to 30 June, 2026. Pension members can also put part of their balance into a term deposit for six months, one year, or two years, giving a set rate of return on that portion while the rest stays invested.
How we chose the winners
Scored across the full customer journey
Every option was scored on performance and features. Returns after fees determine how long your money lasts, so performance was weighted 70% and features 30%.
Performance
We measured each option's annualised net return over the seven years to 30 June, 2026, considering the investment return after investment management fees, performance fees, and other indirect costs. We then subtracted the fund's administration fee, modelled across account balances from $100,000 to $600,000.
Features
Support carried the most weight at 60%, covering advice, tools, online self-service, and customer service. Investment flexibility was 30%, covering the investments on offer, income payment options and switching. Opening and closing the account were 5% each.
Profiles
Options were grouped by how much they held in growth assets, and only compared within their group. The overall score combined each providers its best option from each:
| Profile | Growth assets | weight |
|---|---|---|
| Cash | 0% | 10% |
| Conservative | 20–39.99% | 20% |
| Moderate | 40–59.99% | 20% |
| Balanced | 60–79.99% | 35% |
| Growth | 80–100% | 15% |
Past performance is not a reliable indicator of future performance, and providers can change fees, options and features at any time. Performance figures assessed from July 1, 2025 to June 30, 2026. Full detail is in our methodology document.
Who we looked at
To be assessed, an account based pension must meet a strict set of eligibility criteria. In general terms, a product is included if it's open to the public and available directly, without going through a financial planner. That ruled out corporate funds, products closed to new members, and wrap-only products, which are usually accessed through an adviser and can carry platform fees on top of the pension's own fees. Annuities and term allocated pensions sit outside the scope too.
Each option also needed seven years of performance history behind it, while providers needed at least $100 million in funds under management across its super and pension assets to be considered.
On that basis we assessed 33 providers and 183 investment options, from Australia's largest industry and retail funds through to smaller public-offer funds.
What to keep in mind
Your income isn't guaranteed, and it isn't for life
An account based pension pays you until the balance runs out. What you actually receive over a 20- or 30-year retirement comes down to three things: how the balance is invested, how much you draw, and the fees. The starting balance is only part of the story.
Fees compound over a long retirement
Check how the administration fee is charged. It may be a flat dollar amount, a percentage of your balance, or a combination, and it may or may not be capped. Flat and capped fees tend to suit larger balances because percentage fees keep growing as your balance does. Investment fees vary widely between options, and a gap that looks trivial in any one year adds up over decades.
Poor returns early hurt more than poor returns later
Growth-heavy options have delivered the strongest long-run returns, with bigger swings along the way. A downturn in the first years of retirement does more damage than the same downturn later, because you are drawing an income at the same time the balance falls. This is known as sequencing risk. Many funds let you hold a cash or conservative option for near-term income alongside growth options for the longer term.
Know the drawdown rules
You may have to withdraw a government-set minimum each year, starting at 4% of your balance if you're under 65 and rising with age. There is no maximum. Look at how flexibly a fund lets you set the amount and frequency of payments, whether you can choose which investment option they are drawn from, and how easily you can take a lump sum.
Check what happens when you move in
Some funds, including several of this year's winners, pay a retirement bonus when eligible members move from an accumulation account into a pension account. Amounts and conditions vary, so read the details before counting on it. There is also a lifetime limit on how much you can move into the tax-free retirement phase, known as the transfer balance cap and currently $2.1 million for financial year 2026-27. Anything above it generally stays in an accumulation account, where investment earnings are taxed.
Support matters more in retirement
As you get older your optimal drawdown rates, investment mix, and how your Account Based pension interacts with the Age Pension might change. Look at what advice each fund offers, whether it's covered by the fees or charged separately, and what tools, calculators and self-service functions members can use.
What this award is and isn't
What it is:
- It is a measure of value over time. We measured seven years of returns after fees, including administration fees modelled across a range of account balances, weighed against the features that support members in retirement, across five risk profiles.
- It is a level playing field. Every eligible provider was assessed under the same methodology and benchmarked against its peers, from Australia's largest funds to smaller public-offer ones.
What it isn't:
- It isn't personal financial advice. Results are based on general investment profiles and modelled balances, not your individual goals or circumstances. Past performance is not a reliable indicator of future performance.
- It isn't the only thing to look at. Read each product's Product Disclosure Statement, Target Market Determination and fee information, and consider your own situation, or seek financial advice, before making a decision.
- It isn't a list of every account based pension in Australia. Wrap-only products, annuities, corporate funds and products closed to new members sit outside the scope of these Awards, and some products won't meet our eligibility criteria.
FAQs
Who decides the winners for Canstar's Star Ratings and Awards?
Canstar's expert researchers review the overall value offered by a provider for its products in a financial services category. We consider metrics such as price and costs against features and functionality, with all of the competitors in a category compared using Canstar's unique research methodology. The products or providers recognised as winners are those that offer the highest overall value proposition.
What other awards does Canstar give?
In addition to Canstar's Star Ratings that appear in our comparison tables, Canstar gives Outstanding Value Awards that identify providers with high-performing products. Separately, Canstar's Customer Satisfaction Awards reveal how content customers are with a particular financial institution or insurance provider.
What are Canstar's Outstanding Value Awards?
Canstar recognises financial institutions with annual Awards for outstanding value across a wide range of product categories. These Awards are given to the providers whose products are the strongest overall performers in our Star Ratings over the award period.
What are Canstar's Customer Satisfaction Awards?
Canstar's Customer Satisfaction Awards are for providers, recognising institutions with the most satisfied customers overall based on consumer surveys.
How does Canstar work out award-winning brands and providers?
Canstar compares over a thousand brands and products across multiple finance and household services categories, including banking, insurances, superannuation as well as energy and mobile. Each of Canstar's Star Ratings and Awards uses a unique methodology that is brought together by our expert Research team, with products analysed based on price and features. You can find out more about how Canstar's value-based rating system works.
Who do I contact for a media enquiry about Canstar's Star Ratings?
For media enquiries, commentary or analysis about Canstar's Star Ratings and Awards, including our Outstanding Value Awards or Customer Satisfaction Awards, please contact our Corporate Affairs team.