Super investment option
How your super is invested across shares, property, bonds and cash — usually a default you can change.
Every super fund offers a range of investment options, from conservative through balanced to high growth. Most members sit in the default, typically a balanced or MySuper option chosen for them.
The mix between growth assets such as shares and property, and defensive assets such as bonds and cash, is the single largest determinant of your long-term return. Fees matter, but asset allocation matters more.
The right choice depends mostly on time horizon. A member decades from retirement can absorb volatility that would be unacceptable for someone drawing an income next year.
Why the default is not always right
A 25-year-old in a conservative option may sacrifice several percentage points of annual return over forty years — a difference that compounds into hundreds of thousands of dollars by retirement.
The bit people get wrong
Switching to cash after a market fall locks in the loss and misses the recovery. The years when a growth option looks worst are usually the worst times to abandon it.
Common questions
What is a MySuper option?
A simple, low-cost default product that funds must offer. It is where contributions go if you never make an investment choice.
How often should I review my option?
Every few years, and after major life changes. Frequent switching in response to markets tends to reduce returns rather than improve them.
Do lifecycle options adjust automatically?
Yes. Lifecycle or age-based options gradually shift towards defensive assets as you get older, without requiring you to make the change yourself.