Despite turbulent world events, including the war in the Middle East, Australian superannuation funds have chalked up a fourth straight year of strong returns, with UniSuper Growth edging out its peers to be the best performer over the period.

Excellent superannuation returns once again

Data released by Chant West indicates that the median growth superannuation fund, which is 61% to 80% invested in growth assets, gained a healthy 9.5% during FY26.

Chant West said this followed returns of 9.2% in FY23, 9.1% in FY24, and 10.4% in FY25, “taking the cumulative return to an impressive 44% over the past four years”.

Members invested in higher-risk options would generally have enjoyed even better outcomes, the analytics company said.

Chant West Head of Super Investment Mano Mohankumar said the FY26 result was once again driven by international shares, but it also helped that nearly all asset classes generated positive returns over the period.

He added:

International shares surged 25.5% in hedged terms, supported by continued enthusiasm for AI and robust corporate earnings. Despite the Australian dollar’s appreciation against most major currencies, the return in unhedged terms delivered an impressive 17%. International shares have the highest allocation within a typical growth fund, accounting for about 31% on average. By comparison, Australian shares, which on average has a weighting of 24%, returned a modest 6.2% over the year.

Mr Mohankumar said generally speaking, funds with a higher allocation to international shares performed better.

He added:

Diversification also provided some benefit given the wide dispersion of returns across asset classes, though it would have helped if you had lower allocations to traditional defensive assets. Australian bonds, international bonds and cash returned 1.5%, 2.9% and 3.9%, respectively, making them among the weakest performing asset classes over the year. The only asset class to finish in negative territory was Australian listed property, which declined 1.8%. In contrast, international listed real assets performed exceptionally well, with international listed infrastructure and listed property returning 17.2% and 14.3%, respectively.

Which were the best-performing superannuation funds?

Among growth funds, the top-performing growth funds for the year were UniSuper Growth with 12.3%, NGS Super Diversified with 11.5%, CFS Firstchoice Growth with 11.5%, and Hostplus Balanced with 10.8%.

Mr Mohankumar said that while super funds had delivered four straight years of returns of 9% or more, that level of return shouldn’t be thought of as normal.

He added:

The typical long-term return objective for growth funds is to beat inflation by 3.5% p.a., which translates to roughly 6% p.a. Since the introduction of compulsory super, the annualised return is 8% and the annual CPI increase is 2.7%, giving a real return of 5.3% p.a. – well above that 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020 and the high inflation and rising interest rates in 2022 – super funds have returned 6.9% p.a., which is still comfortably ahead of the typical objective.

The post Which superannuation fund outperformed its peers last financial year? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

South32 Ltd (ASX: S32) shares climbed as much as 2.5% at Monday’s open before easing to trade around 1.7% higher at $3.97 in early afternoon trade.

The mining giant has been a standout performer over the past year, with its shares gaining 31%, comfortably outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen just 1% over the same period.

So, what impressed investors?

South32 unveils strong operating update

South32 released its June quarter production report alongside details of a transformational portfolio reshaping.

The headline announcement of South32 shares was the sale of its aluminium value chain business – excluding Mozal Aluminium – to Alcoa in a deal worth up to US$5.6 billion. The transaction also transfers around US$1.2 billion of rehabilitation provisions and is expected to reshape South32 into a more focused base metals producer.

Operationally, the company also delivered several positive surprises. Copper production at Sierra Gorda exceeded FY26 guidance by 2% and generated record annual distributions of US$401 million. Manganese production also beat expectations, finishing 1% above guidance in Australia and 4% ahead in South Africa.

Group sales volumes rose 15% during the June quarter, unlocking around US$200 million of working capital and supporting stronger cash generation.

South32 also returned US$327 million to shareholders during FY26 through dividends and on-market share buybacks while continuing to invest in future growth, spending approximately US$710 million developing its Hermosa zinc-lead-silver project in Arizona.

What management said

The update also marked the company’s first production report under new CEO Matt Daley, who officially succeeded Graham Kerr on 1 July. Daley said:

We continued to deliver strong operating results, exceeding Group production guidance for FY26. We increased quarterly sales volumes by 15%, capturing the benefit of strong market conditions across many of our commodities, and releasing working capital which added to the Group’s cash generation. On 1 July, we announced a step change for South32, with the sale of our aluminium value chain business to Alcoa. Once complete, this sale will unlock significant value for shareholders and reposition South32 as a leading upstream base metals focused company. Our portfolio will be built around high-margin, long-life assets in favourable jurisdictions, with approximately 85% of pro-forma earnings from base and precious metals and approximately 55% production growth from approved projects.

What else should investors know?

Management highlighted continued strong production from Cannington, Sierra Gorda, and its manganese operations. Development at Hermosa remains on schedule, with key US permitting milestones achieved.

Despite higher freight and raw material costs linked to geopolitical disruptions, South32 said it maintained disciplined cost control across the business.

Looking ahead, the company plans to optimise its existing operations while progressing open-pit development at Cannington and managing water impacts at its Australian manganese business. Updated FY27 production guidance for Australia Manganese is expected with its upcoming full-year results on 27 August.

Daley added:

Looking ahead, our focus on operational excellence, a strong balance sheet and transformational growth in base metals leaves us well positioned to deliver value for shareholders.

The post Why South32 shares edge higher on strong results and landmark deal appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in South32. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you looking forward to living a comfortable retirement lifestyle but aren’t sure whether your superannuation is on track to get you there?

Or perhaps you want to find out the superannuation balance you’d need to maintain a good standard of living, do some regular activities, meals out, and perhaps even an occasional overseas trip.

Here’s a rundown of what the average Aussie has in their super at 56 and 66 years old, and what you’d need at each age to have enough for retirement.

Find out how yours compares.

How much superannuation does the average Australian have at age 56?

There isn’t an exact figure for the average superannuation balance at age 55, but the Association of Superannuation Funds of Australia (ASFA) has a good guideline.

ASFA’s data shows that at age 55 to 59, the average Australian male has around $319,743 in superannuation. The average female in the same age bracket has approximately $242,945.

How much superannuation does the average Australian have at age 66?

The average 65 to 69-year-old Australian male has an average superannuation balance of $448,518, and women have around $392,274.

Age 56 versus age 66: Why is the gap so wide?

The difference between super balances at age 56 versus age 66 is significant. 

Over the 10-year period, average balances increase by up to $150,000.

It could be that these individuals have had more time to add additional contributions to their superannuation balance. 

But it also shows the importance of compounding. It’s clear that accumulating wealth early on, investing in a well-performing fund, and at a risk profile that suits your own, can supercharge your balance down the line.

Are these average balances enough to retire on?

No. In fact, the average Australian is quite far behind.

ASFA estimates that it’ll cost single Australians around $55,923 per year. It’ll cost couples living together closer to $78,566 per year in total.

These figures also assume you’ll start your retirement at age 67. It also assumes that you’ll receive a part Age Pension around this time and that you own your home outright.

In order to fund this type of comfortable retirement, ASFA calculates that single Australians will need around $630,000 in their superannuation at age 67. Meanwhile, couples will need around $730,000 combined at the same age.

Ok, so how much do Aussies need in their superannuation by age 56 and 66 to be on track?

Using ASFA’s Super Balance Detective tool, I’ve calculated what you’d need at ages 56 and 66 to reach that sum.

At age 56, you need around $416,000 in your superannuation.

At age 66, this should be more like $618,500 in order to live comfortably when the time comes. 

As you’ll see. These sums are significantly higher than the average at each age milestone.

And this means you’ll need to bridge the gap another way.

It’s a good idea to start by making additional contributions. You can take advantage of additional concessional or non-concessional contributions, whether this is via salary sacrificing or by making after-tax payments (within your annual limits).

Government initiatives (if eligible) could also help bridge the gap between the superannuation balance you have and what you need.

The post Average superannuation balance for 56 vs 66-year-olds in 2026. How does yours compare? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.