MySuper provides consistent returns for members: Rainmaker

New data from Rainmaker Information found MySuper or default options continued to deliver consistent performances and returns for Australians, despite periods of uncertainty.

According to the Rainmaker MySuper Index, which contains all MySuper and default options applicable to a 40-year-old member, an estimated return of 9.3% was recorded for FY26, and a 9.7% return per annum over three years.

The index only recorded two months of negative returns over the financial year, while the highest monthly return of 2.7% occurred in April 2026.

That followed a -3.4% decline in March after the outbreak of conflict in Iran, but the index rebounded by a further 2.3% in May, supporting a full recovery.

As a result, a member with a balance of $100,000 at the start of July 2025 that switched to cash at the start of April 2026, following the March dip, would be over $5000 worse off by financial year end, compared to if they had stayed the course and benefited from the recovery, Rainmaker said.

"The Rainmaker MySuper Index demonstrates the value of staying invested through market volatility," Rainmaker Information associate director of research Camille Schmidt said.

"Despite short-term shocks, including geopolitical events earlier this year, the strong recovery highlights how default settings are working in members' favour, delivering consistent and competitive outcomes."

"For many Australians, that has translated into real gains, with balances growing meaningfully over the year."

Meanwhile, more members are selecting the default option as MySuper membership increased by 10% to 15 million accounts, while assets rose 38% to almost $1.2 trillion in the last five years alone.

MySuper products typically benchmark their long-term performance against CPI plus 3% to 4% over a rolling 10-year period, implying a CPI plus 3-4% targets of around 7-8%. The Rainmaker Index has achieved above the range, it said.

Meantime, equities from both domestic and global were key drivers of performance in the past financial year.

"In particular, international equities (Australian dollar hedged) delivered stellar performance of 15.4%, underpinned by cyclicals, tech stocks and the AI boom," Schmidt added.

"However, unhedged returns are materially lower due to the Australian dollar appreciating by 8.1% over this period. The S&P ASX 200 rose 6.1%, underperforming MySuper returns."

Listed property posted a negative return of -2.2%, consistent with the RBA cash rate, while Australian fixed interest, international fixed interest and cash returned 0.2%, 2.9% and 4.1% respectively.

"The average MySuper portfolio is heavily growth-oriented, with around three-quarters invested in equities and other return-seeking assets, underpinning its ability to deliver strong, long-term outcomes for members," Schmidt added.