Super balances of over $55k have the potential to truly start working for you when it comes to investment returns and compound interest. However, the returns a balance can generate in a poor-performing fund may pale in comparison to the returns they could generate in a top-performing fund.
Canstar considers investment performance, fees and product features in assessing funds for its Superannuation Star Ratings to help Australians narrow their search to products that offer outstanding value for their needs and circumstances
People’s needs can vary not just by superannuation balance, but also by their age, and Canstar’s Superannuation Star Ratings have been calculated with this in mind – funds were assessed across 25 consumer profiles, each one based on a different combination of age and super balance.
The tables below display the 5-Star super funds on Canstar’s database in each age category (as rated in the 2018 Superannuation Star Ratings) for balances between $55,000 and $100,000:
The table below displays the 5-Star super funds on Canstar’s database for 18-29 year-olds with a super balance between $55,000 and $100,000, sorted by provider name (alphabetically).
30-39 year olds
The table below displays the 5-Star super funds on Canstar’s database for 30-39 year-olds with a super balance between $55,000 and $100,000, sorted by provider name (alphabetically).
The table below displays the 5-Star super funds on Canstar’s database for 40-49 year-olds with a super balance between $100,000 and $250,000, sorted by provider name (alphabetically).
The table below displays the 5-Star super funds on Canstar’s database for 50-59 year-olds with a super balance between $250,000 and $750,000, sorted by provider name (alphabetically).
The table below displays the 5-Star super funds on Canstar’s database for 60+ year-olds with a super balance between $750,000+, sorted by provider name (alphabetically).
How does your super balance stack up?
According to ASFA’s retirement standard data from October 2017, the average superannuation balances by age are as follows:
|Age||Mean balance ($)|
Source: ASFA Retirement Standard, October 2017
For a ‘comfortable lifestyle’ in retirement, ASFA states that retirees need the following amounts in super at the time of retirement:
- Couple: $640,000
- Single: $545,000
According to ASFA, a comfortable retirement assumes the retiree/s will draw down all their capital and receive a part Age Pension.
Source: ASFA Retirement Standard, April 2018. All figures in today’s dollars using 2.75% AWE as a deflator and an assumed investment earning rate of 6 per cent. They are based on the means test for the Age Pension in effect from 1 January 2017.
Four tips to boost your super
According to Canstar’s Group Manager of Research and Ratings Mitch Watson, you can do the following four things to help boost a low super balance.
- Check your fees: “Fees have a large impact on your balance proportionally, so make sure you aren’t being overcharged.”
- Assess your insurance coverage: “Is insurance critical for you, and if so, is taking out a policy within your super the best option for you? Premiums may increase as you get older so these questions are worth asking if your super balance isn’t growing as fast as you’d like.”
- Select the right investment option: “Understand which investment option you are in and consider if it’s the right one for your lifestage and risk profile. Investing in cash isn’t necessarily going to grow your super balance at a quick pace; and conversely, going into aggressive could actually reduce your balance in the short term.”
- Consider making additional contributions to grow your balance: “Compulsory contributions will grow over the next few years but a bit extra now can really help you in the future.”
You can get help finding a super fund that has the right balance of fees, performance, features and investment options for you with Canstar.