Note: This article lists the 30 top-performing pension (retirement) funds over 5 years to 31 December 2018. For the top-performing super funds, see SuperGuide article Super stars! Top 30 super funds over 5 years.
Discovering the best-performing super funds is fascinating reading for any Australian interested in how their super is accumulating. And whenever we publish articles covering this topic, these articles prove very popular among our SuperGuide readers.
Information on the top-performing pension funds however is more difficult to obtain. Pension or retirement funds are those pension products/super funds that pay out super pensions to its members. Thanks to superannuation ratings agency, SuperRatings, we can provide you with the performance data on the 30 top-performing pension super funds over a 5-year period to 31 December 2018.
The table below contains the 30 top-performing pension funds, based on the capital stable investment option of allocated pension products/accounts offered by super funds. The capital stable option typically has between 20% and 40% of growth assets (such as shares and property) in its portfolio.
Note: If you are seeking information on the 30 top-performing super funds (that is, those super funds not paying out pensions), then see SuperGuide article Super stars! Top 30 super funds over 5 years.
SuperGuide Premium is ad-free
The top-performing allocated pension capital stable investment option over the 5-year period to 31 December 2018 delivered an average annual return of 6.5% over that period. The obvious question to ask is: which pension fund delivered this top average annual return for the 5-year period. The answer is… AustralianSuper.
The AustralianSuper Choice Income Account — Stable investment option was also one of the top 3 performers over 3 years, 7 years and 10 years, with an average annual return of 6.1% a year over 3 years to 31 December 2018, and an average annual return of 7.6% a year, over 7 years to 31 December 2018, and 7.4% a year, over 10 years to 31 December 2018.
Pension fund option, UniSuper Allocated Pension — Conservative came second over the 5-year period to 31 December 2018, with an average annual return of 6.2%. Third place went to HESTA Allocated Pension — Conservative with an average annual return (AAR) of 6.1% over the 5-year period.
Five super funds delivered an AAR of 6.0% over the 5-year period, coming in fourth to eighth place: HOSTPLUS Allocated Pension — Capital Stable (4th), MyLife MyPension – Conservative (5th), NGS Super AP – Defensive (6th), StatewideSuper AP – Conservative (7th), and TelstraSuper RetireAccess AP – Conservative (8th).
Note: Due to rounding to one decimal place, the 5 super fund options delivered the same AAR return of 6.0%, but rankings are based on more precise, unrounded figures, according to rating company, SuperRatings.
The allocated pension option that ranked ninth over 5 years to 31 December 2018, was Cbus Allocated Pension — Conservative with an average annual return of 5.8%, while tenth place went to Sunsuper for Life Allocated Pension — Conservative (6th), with an AAR of 5.7% over the 5-year period to 31 December 2018.
Three pension funds delivered an AAR of 5.6% over 5 years to 31 December 2018: MTAA Super Allocated Pension — Conservative, Vision Super Allocated Pension — Conservative, and Energy Super Allocated Pension — Stable Option. More precise data indicated that these 3 super funds came 11th, 12th, and 13th respectively.
CareSuper Allocated Pension — Capital Stable (14th place) delivered an AAR of 5.5% over the 5 years to 31 December 2018, along with Media Super Allocated Pension — Stable (15th place).
Pension funds ranked from 16 to 30 delivered AAR over 5 years to 31 December 2018, ranging from 5.3% to 4.5%.
See the table below for more information on the top 30 performing pension funds.
Note: While performance data in the table below is shown to one decimal place, rankings are based on more precise, unrounded data. The rounding to one decimal place explains why pension options with the same return are ranked differently.
We thank SuperRatings for providing the data contained in this article. In the table below, Allocated Pension has been shortened to AP in all instances.
At the end of this article, you can find links to other interesting articles, including the top 30 performing super funds for the 5-year period to 31 December 2018, the top-performing asset classes, and the cheapest super funds.
Top 30 allocated pension capital stable (20-40) investment options over 5 years (to 31 December 2018) — Ranked by 5-year performance
|Ranking||Name of pension fund||Fund type||Anyone can join (Y/N)||5 years: per annum (%)||Fees per $250,000|
|1||AustralianSuper Choice Income Account — Stable||Industry||Y||6.5%||$1,378|
|2||UniSuper AP — Conservative||Industry||N||6.2%||$1,396|
|3||HESTA AP — Conservative||Industry||Y||6.1%||$1,641|
|4||HOSTPLUS AP — Capital Stable||Industry||Y||6.0%||$2,265|
|5||MyLife MyPension — Conservative||Industry||Y||6.0%||$2,801|
|6||NGS Super AP — Defensive||Industry||Y||6.0%||$2,715|
|7||Statewide Super AP — Conservative||Industry||Y||6.0%||$2,178|
|8||Telstra Super RetireAccess AP — Conservative||Corporate||N||6.0%||$2,128|
|9||Cbus AP — Conservative||Industry||Y||5.8%||$1,304|
|10||Sunsuper for Life AP — Conservative||Industry||Y||5.7%||$2,081|
|11||MTAA Super AP — Conservative||Industry||Y||5.6%||$1,608|
|12||Vision Super AP — Conservative||Industry||Y||5.6%||$2,150|
|13||Energy Super AP — Stable Option||Industry||Y||5.6%||$2,252|
|14||CareSuper AP — Capital Stable||Industry||Y||5.5%||$1,956|
|15||Media Super AP — Stable||Industry||Y||5.5%||$1,615|
|16||Tasplan Pension — Conservative||Industry||Y||5.3%||$2,003|
|17||Super SA AP — Conservative||Public sector||N||5.3%||$2,225|
|18||First State Super AP — Conservative Growth||Industry||Y||5.2%||$2,602|
|19||VicSuper AP — Capital Secure Option||Industry||Y||5.2%||$1,603|
|20||smartMonday Pension — Moderate — Active||Master Trust||Y||5.0%||$3,340|
|21||Local Government Super AP —Conservative||Industry||Y||5.0%||$2,846|
|22||Mercer PS AP — Moderate Model Choice||Master Trust||Y||4.9%||$5,263|
|23||REST AP — Capital Stable||Industry||Y||4.9%||$1,843|
|24||Mercer Super Trust AP — Mercer Conservative Growth||Master trust||Y||4.9%||$3,085|
|25||LUCRF AP —Conservative||Industry||Y||4.8%||$1,903|
|26||Legalsuper AP — Conservative||Industry||Y||4.8%||$2,068|
|27||Equip AP — Conservative||Industry||Y||4.8%||$1,355|
|28||ESSSuper AP — Conservative||Industry||N||4.6%||$1,777|
|29||North AP — North index Defensive||Master Trust||Y||4.5%||$2,216|
|30||IOOF Pension Core – IOOF MultiMix Conservative Trust||Master Trust||Y||4.5%||$2,917|
|SR50 Capital Stable (20-40) Index||4.8%|
Source and notes for Table
Source: Table created by SuperGuide with data supplied by SuperRatings. The returns quoted in the performance tables are after tax, net of investment management fees (including net of implicit asset-based administration fees). This includes management and administration fees that are deducted before returns are credited to members account. Fees refer to the annual fees on a $250,000 balance and include percentage-based administration fees, member fees, investment management fees (including performance-based fees), indirect cost ratios and taxes.
Table note one: While performance data is shown to one decimal place, rankings are based on more precise, unrounded data.
Table note two: The term 20-40 represents the percentage of growth assets (such as shares and property) in the investment portfolio.
Table note three: Fees per $250,000 balance refers to annual fees on a $250,000 pension account balance as at 31 December 2018. Fees include percentage-based administration fees, member fees, investment management fees (including performance-based fees) and taxes, but exclude any applicable employer size rebates
For more information…
For information on the top-performing superannuation funds for the latest calendar year (and previous calendar years) see the following SuperGuide articles:
- Top 10 performing super funds for 2018 calendar year (and previous years)
- Top 10 performing super funds over 15 years (to 31 December 2018)
- Asset classes: Naming the investment winners for the 2018 calendar year (and previous years)
- Super funds return 0.8% for 2018 calendar year
- Super and pension funds with the lowest fees
For more information on the top-performing superannuation funds for the latest financial year (and previous financial years) see the following SuperGuide articles:
- Super stars! Top 30 super funds over 5 years
- Top 10 performing super funds for 2017/2018 financial year (and previous years)
- Top 10 performing super funds over 10 years (to 30 June 2018)
- Asset classes: Naming the investment winners for the 2017/2018 financial year (and previous years)
- Super funds gain 9.4% for 2017/2018 financial year
- Super and pension funds with the lowest fees
Discover the best-performing super and pension funds
SuperGuide Premium is your independent expert on superannuation and retirement planning. Learn about investment choice, super fees, insurance options, how to choose a super fund, and other super strategies.
Includes hundreds of articles, how-to guides, checklists, tips, calculators, case studies, quizzes and a monthly newsletter.
Find out more