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HOW SUPERANNUATION FUNDS PERFORMED THIS YEAR

By TODAY|18 hours ago



Despite a year plagued by lockdowns and financial hardship, superannuation funds
are performing surprisingly well.

But how well has your nest egg fared in 2021 and how can you make sure you're
getting the most out of it?

Today finance expert Effie Zahos says as long as December stays steady, the
average median balanced fund is expected to return around 11 to 12 per cent.


You can sign up for the Today newsletter here. (Today)(Today)

READ MORE: More spots available in first home loan deposit scheme

"That's remarkable given the fact there's been so much volatility," she said.

Zahos said some forecasts by AMP Capital are suggesting that super funds will
stay around five per cent and people can expect economic growth into next year.

"There are extraordinary returns this year. We can expect good economic growth
next year, increased profits and good overall investment returns but they are
saying the forecast is not as strong as last year," she says.



Effie says if people are considering investing their money, it's important to
ask your super fund if it is balanced or conservative.

"If you're close to retirement most people look at conservative, she says.

"Of course, past returns are not an indication of future returns. A lot of us
during the pandemic put our money out of, say, balanced, and put it in
conservative because we were concerned.

(Today)(Today)

READ MORE: Property trends of 2021

"It is important to get financial advice to determine you're in the right asset
class."

A lot of us don't know where our money is so we can get it wrong.

It is important to know your asset class, what fees and what insurance you're
paying.

"Next year you'll see the super guarantee go up to 10.5 per cent. Unless you
change jobs, the fund you're in will stay with you," she says.

"APRA is testing funds and as many as 13 super funds failed. If you got that
letter and you haven't made it, I'd suggest you take a look at it."

(Today)

Watch the full finance segment with Effie Zahos above

The information provided on this website is general in nature only and does not
constitute personal financial advice. The information has been prepared without
taking into account your personal objectives, financial situation or needs.
Before acting on any information on this website you should consider the
appropriateness of the information having regard to your objectives, financial
situation and needs.

Join the Today show family and give yourself the chance to win great prizes by
signing up to our weekly newsletter, delivered straight to your inbox every
Wednesday with a special message from Karl and Ally. You can sign up for free
here.

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