The average superannuation balance for Australians aged 50 is currently around $165,000, with balanced funds, primarily invested in growth assets like shares, generating $18,000 last year. In comparison, the average pension balance for retirees is $320,000, yielding $22,000 from conservative investments. While Colonial First State Super achieved significant returns over 16%, experts caution that similar outcomes may be insufficient in the near future. Kirby Rappell, CEO of SuperRatings, warns of a challenging investment environment ahead, marked by increased volatility, with returns likely reverting to the long-term average of approximately 7%. This shift could mean a considerable decline in returns—an $8,000 drop for a 50-year-old in a balanced fund and a $4,500 decrease for retirees in conservative options. Over the past decade, the best-performing balanced funds include Hostplus (8.4%), Australian Retirement Trust (8.3%), and Australian Super (8.1%), while top funds for retirees are First Super (6.3%), ESSSuper (5.9%), and CSCri (5.7%). This underscores the importance of robust investment strategies as market conditions evolve.
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