Is Your Super Investment Strategy Still Right for You?
Most Australians receive regular compulsory super contributions and may check their returns once a year when they receive their annual statement. But how often do you look at how your super is actually invested?
What APRA's 2026 performance test found
The release of APRA's 2026 Annual Superannuation Performance Test in August is a timely reminder that not all superannuation investment options perform equally.
This year, APRA assessed 547 superannuation products, representing around 61% of APRA-regulated superannuation member benefits. Of those tested, 12 products failed to meet APRA's performance benchmark, and five have now failed the test for at least two consecutive years. APRA noted that the failures were largely driven by lower investment performance rather than higher administration fees and costs.
Passing or failing isn't the full story
While the performance test is an important measure of accountability, passing the test does not necessarily mean an investment option is right for you. Similarly, failing the test does not automatically mean an option is unsuitable or poorly managed.
Your super investment strategy should reflect factors such as:
Your age
How long you have until retirement
Your tolerance for investment risk
How your super fits alongside your other investments and financial circumstances
Look beyond last year's return
It is also important not to focus solely on the most recent year's return. Investment strategies can perform differently from year to year, and assessing performance over an appropriate timeframe, while understanding the level of risk taken to achieve those returns, can provide a more meaningful picture. For instance, one of this year's failed products has a strong history of outperformance over a 10-year period.
Is your super still in its default option?
For many people, their super investment option was selected years ago, or they may simply have remained invested in their fund's default option, which may not be appropriate for their age, balance or circumstances.
When did you last review your super?
Rather than simply asking whether your super fund is performing well, a better question may be: is my super invested appropriately for what I am trying to achieve?
Regularly reviewing your investment strategy, fees, performance, level of risk and insurance premiums can help keep your super aligned with your longer-term retirement objectives.
Ready to review your super?
If you are unsure whether your current super investment strategy is right for you, the team at Carwardines Financial Planning can help you review your options and consider how your super fits into your broader financial plan.
If you'd like to review your current super investment strategy or discuss your longer-term retirement goals, contact the Carwardines Financial Planning team to arrange a conversation.