Sky News – July 4 2025

Superannuation funds jump 10 per cent in 2025 financial year despite turbulence

Sky News, July 4 2025

Australian super funds have lifted 10 per cent over the 2025 financial year despite turbulence from Donald Trump’s economic agenda rocking markets over the past few months.

The nest eggs for many Australians, particularly retirees and pre-retirees, were in focus earlier this year when Trump revealed his sweeping “Liberation Day” tariffs.

Major indexes plummeted across the globe, dragging down the super balances of millions with them.

However, the markets have mostly, if not entirely, recovered with a strong rebound bringing the nation’s nest egg back above historical returns, according to SuperRatings’ executive director Kirby Rappell.

“What a year. I don’t think we all would have guessed we’d end up at double digits,” Mr Rappell said on Business Now.

“If we look (to) first seven months in (the 2025 financial year), we’re up about eight per cent then we were down to plus one per cent a couple of months later.

“Now we end up at 10 per cent. What a roller coaster it’s been.”

He noted many panicked when Trump revealed his sweeping tariffs but stressed the average returns on super accounts meant Australians would thrive despite brief economic shake ups.

Mr Rappell pointed to the Global Financial Crisis and the COVID pandemic as points when superannuants reacted similarly.

“I think if we probably zoom out for a second, over the past 16 years, since the bottom of the GFC, there’s actually only been three negative returns and only five since 1992,” Mr Rappell said.

“It is good to see if you can hold the course it pays off, but jeez, you’ve got to hold your nerve these days.”

Since 1992 the average super fund has grown about seven per cent per year.

Mr Rappell predicted the returns in the future will be between seven and 14 per cent as the super industry is consolidated into fewer and fewer funds.

“Over the past 15 years, there was about 1,500 super funds back then. We’re now down to well under 100, probably under 70,” he said

“You will see it happen. I think the key thing that’s really important for the industry and for the regulatory settings is we want to keep seeing the right level of innovation.

“Super funds are doing a good job. They need to figure out ways to be doing better and you really need to ensure there’s those right settings in the system to keep driving it forwards.”

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