Your superannuation returned 9.4% last financial year. Did your fund keep up?

How your fund compared with the 9.4% median.

The median balanced superannuation option returned 9.4% in FY26, according to research house SuperRatings.

That is a strong outcome by any reasonable measure.

It follows a 10.3% return in FY25 and sits comfortably above the 7.7% per annum the median balanced option has delivered over the past decade.

But a median hides a great deal.

Some funds did materially better than others, and for investors looking to maximise their superannuation, understanding why is important.

Female in elegant outfit smiling and gesturing victory with hands.

Image source: Getty Images

What the median superannuation fund delivered

SuperRatings defines a balanced option as one holding between 60% and 76% growth assets.

That is where the large majority of Australians have their retirement savings invested.

The research house expects every balanced option in its survey to have finished the year in positive territory.

Chant West, which surveys a slightly different universe of funds, put the median growth fund return at 9.5% over the same period.

Its four-year cumulative gain now stands at 44%.

Which funds beat the median

Three balanced options separated themselves from the pack.

Raiz Super's Moderately Aggressive option led the field with 13.4%. NGS Super's Diversified MySuper option returned 11.5%. Hostplus' Indexed Balanced option came third with 11.1%.

Over ten years, the leader board looks different.

Hostplus Balanced tops that table with 8.9% per annum.

Kirby Rappell, executive director of SuperRatings, put the year in context.

While threats of tariffs and the outbreak of conflict between the US and Iran created turbulence around investment returns over the year, superannuation is intended to provide for members in their retirement.

Where the returns actually came from

The answer is overwhelmingly offshore.

Chant West's asset class data shows international shares returned 25.5% in hedged terms across FY26.

Australian shares managed just 6.2%.

Worse still, Australian listed property went backwards, falling 1.8%.

Mano Mohankumar, senior investment research manager at Chant West, stated the following about the drivers:

International shares surged 25.5% in hedged terms, supported by continued enthusiasm for AI and robust corporate earnings.

Investors holding the Betashares NASDAQ 100 ETF (ASX: NDQ) experienced that effect in concentrated form.

NDQ returned 25.68% over the 12 months to 30 June 2026, and the fund now manages roughly $9.4 billion, charging 0.48% per annum.

In contrast to NDQ, a balanced option deliberately holds bonds, cash, property, and unlisted assets so that it does not swing as violently in either direction.

The superannuation settings that changed on 1 July

Several rules shifted at the start of FY27.

The concessional contributions cap rose from $30,000 to $32,500, whereas the non-concessional cap increased to $130,000, with the bring-forward arrangement now permitting up to $390,000 across three years.

The general transfer balance cap lifted to $2.1 million.

Payday super also commenced on 1 July 2026.

Employers must now pay superannuation guarantee contributions on each payday rather than quarterly.

This gives Australians many options to maximise their superannuation balances before they retire.

Foolish takeaway

A 9.4% return makes for a good year, though the ten-year figure of 7.7% per annum is doing the compounding work for most members.

Even so, it is worth checking two things.

The first is what your own fund returned last financial year compared to the median benchmark.

The second is whether the investment option you sit in matches how long you have until retirement.

A younger member parked in a conservative option has probably given up several percentage points a year, whereas someone closer to retirement may want to consider placing their money in safer options.

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. 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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