Superannuation investors had a stellar year in 2024, but it was retirees in pension-phase funds who reaped the biggest rewards. Thanks to tax-free earnings, these investors saw even higher returns than those in accumulation-phase super—proving that timing your transition into retirement is more crucial than ever.
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With some funds outperforming the market by a significant margin, now is the perfect time to assess whether your super is in the right place. If you’re nearing or in retirement, are you maximizing your returns? If you’re still in accumulation, do you have a transition strategy that will set you up for the best financial future?
How Did Super Funds Perform in 2024?
For accumulation-phase investors, growth funds (which hold 61-80% in growth assets) delivered a solid 11.4% return over the calendar year.
📈 But if you were in pension phase? Even better—an average return of 12.2%.
✅ That’s a clear win over the S&P/ASX 200, which posted an 11.2% gain (including dividends).
✅ More importantly, every cent of those pension-phase returns is tax-free, making a massive difference in long-term wealth growth.
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Top-Performing Super Funds in 2024
🏆 Leading the pack in both pension and accumulation phases:
| Super Fund | Pension-Phase Return | Accumulation-Phase Return |
|---|---|---|
| UniSuper Growth | 16.0% | 14.7% |
| CFS FirstChoice | 15.1% | 13.6% |
| Mine Super | 14.5% | 13.4% |
💡 Key takeaway: Getting your money into pension phase can supercharge your returns—all thanks to one powerful factor: tax-free earnings.
Why Pension-Phase Super Outperforms: The Tax-Free Advantage
Once you move your super into retirement (pension) phase, the investment earnings in your fund become completely tax-free.
📌 How does this impact your wealth?
✅ Every dollar of return stays in your account, either compounding for future years or boosting your retirement income.
✅ Over a decade, this tax-free compounding effect can result in tens of thousands of extra dollars in your retirement balance.
✅ Simply understanding when and how to transition to pension phase can mean a much larger financial cushion in your later years.
📢 For those aged 60 and above, this is your reminder to review your retirement strategy now!
Long-Term Performance: Which Funds Are Winning the Super Race?
Short-term returns are great, but long-term consistency matters more.
📈 Top-performing growth funds over the last decade (pension phase):
| Super Fund | 10-Year Average Return (Pension Phase) |
|---|---|
| Hostplus Balanced | 9.3% |
| Australian Retirement Trust Balanced | 9.2% |
| CSCri Aggressive | 9.1% |
📊 Balanced funds (41-60% in growth assets) also delivered solid returns:
| Super Fund | 10-Year Average Return (Pension Phase) |
|---|---|
| ART Conservative-Balanced Fund | 7.3% |
| Vision Super Balanced | 7.3% |
| AustralianSuper Conservative Balanced | 7.1% |
⚠️ Beware of misleading fund names: Some funds labeled as “balanced” actually invest 61-80% in growth assets, making them functionally growth funds.
5-Step Super Fund Health Check: Is Your Super Working for You?
✅ 1. Review long-term performance.
🔍 Check your fund’s 10-year returns—short-term spikes mean little without long-term consistency.
✅ 2. Compare your 2024 performance.
📊 Growth funds in pension phase returned 12.2% on average—how did yours stack up?
✅ 3. Watch out for high fees.
💸 Excessive admin fees eat into your returns. Compare fees to industry benchmarks.
✅ 4. Know your investment mix.
📌 Some “balanced” funds are actually growth funds—make sure your asset allocation matches your goals.
✅ 5. Engage with your fund.
🔑 Log in, review your numbers, ask questions. If your fund isn’t delivering, you have the power to switch.
The Bottom Line: Don’t Leave Your Retirement Wealth to Chance
Super funds had a fantastic year in 2024, but whether or not you maximize the benefits depends on where your money is invested.
🚀 If you’re nearing retirement, transitioning into pension phase at the right time could mean higher returns and a bigger retirement nest egg.
🔍 If you’re still in accumulation, it’s time to review your strategy to ensure you’re set up for success when you retire.
💡 Your super’s job is to grow your wealth—make sure it’s doing that as efficiently as possible.
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