Compound returns and super

Our Pre-mixed options are invested in a range of assets like shares, property, toll roads, airports and fixed interest, with the aim of helping your super grow over time.

These assets generate investment returns, and this is what helps grow your account balance over time, in addition to any contributions you make. 

Positive investment returns can then generate returns of their own. This is called compounding.

What is compounding and how does it work with super? 

• Compounding occurs when positive investment returns are reinvested.
• Over time you earn returns on both your original amount and any returns you’ve already earned.
• The longer you invest, the more powerful the benefits of compounding can be.

Example of the power of compounding over time

In 1984, Alice invested $10,000 in our Growth (MySuper) option and made no further contributions.

More than forty years later, that investment would have grown to over $350,000¹, as shown in the chart below.

¹From 1 July 1984 to 30 June 2026. This example is for illustration purposes only. Balances have been calculated using financial year investment returns compounding annually with no additional contributions and does not take into account the impact of inflation. The crediting rate is based on investment returns minus investment fees and costs, transaction costs and investment-related taxes and until 31 January 2020, the percentage-based administration fee. Excludes fees and costs that are deducted directly from members’ accounts. Past performance is not a reliable indicator of future performance.

What do you need to do?

The best part? You don’t need to do anything. Your investment returns will compound automatically over time.

Giving your super more time to compound can be a simple way to build your retirement savings over the long term.

If you’d like to learn about other ways you can maximise your super, our Advice team can help you understand your options and offers different levels of guidance depending on what you need.