Superannuation breaks a stellar streak with falls in November

Australian superannuation funds have fallen in value for the first time in more than six months.

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Key points

  • Superannuation funds are estimated to have fallen in November.
  • This followed an unbeaten run of seven positive months.
  • Super funds are still performing better than historical averages for the year to date.

Australian superannuation funds have fallen in value for the first time in more than six months, with property and Australian shares weighing them down, research house SuperRatings says.

After a stellar seven-month run of positive returns, SuperRatings has estimated that the median balanced fund fell by 0.5% in November.

Downward shift after strong performance

SuperRatings director Kirby Rappell said super funds were still doing well overall, however, compared with historical averages.

We expect most asset classes to have delivered negative returns over the month with listed property and Australian shares seeing a pullback. While this month breaks the strong run, 2025 is well on track to be an above average year for member balances, with the 11 months to 30 November 2025 estimated to have returned 8.7% against a median of 7.1% for the full year since 2000.

SuperRatings said the median growth option fell by an estimated 0.6% in November, while the median capital stable option is estimated to have returned a negative 0.2% for the period. 

Mr Rappell said the fall in November had implications for the returns over the calendar year.

The estimated decline means a second consecutive double digit calendar return is unlikely, however members should be pleased that returns remain strong over the long term with the median balanced option providing an estimated 7.1% per annum over the last 25 years. For pension members, the results have been even better with the median balanced pension product is estimated to return 9.5% for the 11 months to 30 November 2025.

Uncertainty ahead

SuperRatings said while the returns were positive for the year to date, there was uncertainty going forward about the trajectory of inflation and its impact on interest rate decisions.

While the returns so far are worth celebrating, the reserve bank of Australia held interest rates in the final meeting of 2025 and the trajectory of inflation into 2026 remains somewhat uncertain. It is important to remember the long-term nature of superannuation and the benefit of holding steady to your long-term strategy should we see increased ups and downs over the second half of the 2026 financial year.

The Association of Super Funds Australia (ASFA) recently estimated that to achieve a "comfortable" retirement at age 67, couples needed a superannuation balance of $690,000, while singles would need $595,000.

To achieve a "modest" retirement while renting privately, a couple would need $385,000, while a single person would need $340,000.

These figures were calculated in today's dollars and assume inflation of 2.75% and investment earnings of 6%.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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