Compound returns and super

Depending on your investment option, we invest your super in a range of different assets like shares, property, toll roads, airports and fixed interest, so that over time, it can grow more than if it was sitting in a bank account.

The money in your account, plus all your contributions, will earn investment returns over time. The best part is these investment returns then compound.

What is compounding and how does it work with super? 

Simply put, compounding happens when the money you earn on an investment is reinvested, so you gain returns on both your original amount and any returns you’ve already earned. Thanks to compounding, these returns will generate more returns year after year,   helping your balance grow faster over time. 

The power of compounding over time

In 1984, if Alice had invested $10,000 in our Growth (MySuper) investment option, and she didn’t make any more contributions…

Over forty years later, Alice’s investment would have grown to around $330,000^*, as shown in the chart below.

^* From 1 July 1984 to 30 June 2025. 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.

The impact of compounding is significant over a long time and the best part, is that Alice didn’t need to do anything – it happened automatically. Allowing your super to continue to compound its returns is a simple yet powerful way to plan for your future. 

If you’d like to learn about other ways you can take advantage of your super account, you can speak to our Advice team.