Super returns headed for positive 7+% EOFY

Mike Taylor

Managing Editor and Publisher

11 June 2026

Superannuation fund returns took a hit in March due to the conflict in the middle east but have retained those losses over the past two months, according to specialist superannuation research and ratings house, SuperRatings.

The outlook is for a financial year outcome in the high single digits.

It said it is estimating the median balanced option will return 2.1% for May, with the result largely driven by a tech-led rally in international shares.

SuperRatings said the expected May gain will build on the 2.6% gain in April which meant funds have now fully recovered from the 3.2% loss recorded in March.

Commenting on the result, SuperRatings Director, Kirby Rappell said that as the sector approach the end of the financial year it seemed to be getting used to the ups and downs of markets.

“This is educating members on how to deal with uncertainty, which has been more subdued in recent years,” Rappell said. “It is somewhat surreal to see that the median Balanced super fund has delivered a return of 7.9% over the financial year so far and 7.4% per annum over the past decade.”

According to SuperRatings, the median growth option grew by an estimated 2.4% for the month, while the median capital stable option rose by a more modest 1.3%.

Pension returns also continued their recovery, with the median balanced pension option increasing by an estimated 2.3% in May. The median capital stable pension option is estimated to rise 1.5% over the month, while the median growth pension option is estimated to rise 2.6% for the same period.

The SuperRatings commentary said that with funds now ahead of where they stood before the start of the US-Iran conflict, the pace of the market turnaround is a powerful reminder for members of the benefit of a long-term focus when it comes to their superannuation.

“Members who switched to Cash or other defensive assets in March would have missed out on the rebound, crystallising losses that have since been fully recovered. Looking ahead, we face continued uncertainty in the Middle East and a number of AI IPO’s coming to market, meaning the path to the end of the financial year is far from certain.”

“At the end of May, funds are now on track to deliver high single digit returns for the financial year, with more growth-orientated options potentially reaching double-digits if the current momentum holds through June,” Rappell said.

“However, as March reminded us, investor sentiment and markets can shift quickly. We encourage members to remember that superannuation is a long-term investment and to speak with their fund or a trusted professional financial advisor before making any changes to their investment strategy.”