Is Your Super Built for the Road Ahead?
Why what’s under the hood matters more than the badge on your super fund
When we sit down with clients to talk about superannuation, the first thing they usually mention is their fund provider.
“I’m with AustralianSuper.”
Or, “I use QSuper.”
And while it’s important to know who your fund is with, what’s more important,especially as you get closer to retirement, is what’s inside that fund.
Super funds are much like cars, the ‘brand’ tells you very little about how it actually performs, it’s what’s under the hood that makes all the difference.
Super is the Vehicle. The Portfolio is the Engine.
Imagine your super fund is a vehicle.
The name of the fund is the brand badge on the front (Toyota, Kia, Mazda), but the real power lies under the bonnet: the engine, the drivetrain, and the transmission. This is your investment portfolio, the mix of assets (shares, bonds, property, cash, etc.) working behind the scenes.
And it’s this mix that determines how your super actually performs:
- How fast it can grow
- How steady the ride feels
- How well it handles ups and downs
- And how far it can take you in retirement
Total Return = Income + Growth
When we talk about how well a portfolio performs, we’re talking about total return. And that’s made up of two parts:
Income Return – the interest, dividends or rent the investments pay you
Capital Growth – the increase in the value of the investments themselves
Total Return = Income Return + Capital Growth
Let’s say your super portfolio earns 3% income from dividends and interest, and your investments rise in value by 4%.
That’s a total return of 7%.
Different portfolios offer different combinations. Some focus more on income. Others capital growth. And your ideal mix depends on your stage of life and what you need from your super.
An Example: Same Fund, Different Outcomes
Let’s say two clients both have $1,000,000 in Colonial First State Super.
Client A is in a Conservative portfolio.
→ It delivers 1.73% income, 5.64% capital growth.Client B is in a High Growth portfolio.
→ It delivers 4.06% income, 9.60% in growth.
Both are with the same super fund. But over 10 years, their balances and experiences can be very different.
That’s because what’s under the bonnet, your portfolio, matters more than the logo on the front of the car.
So Why Does This Matter?
Because your retirement outcome depends not just on how much you have in super, but how well it’s invested, especially in the years leading up to and just after retirement.
Get the settings wrong and you might:
Take too little risk and your money may not grow enough
Take too much risk and feel anxious about market downturns
Focus too heavily on income when you could benefit from growth (or vice versa)
It’s like having a car that looks good, but isn’t suited to the road ahead (for you). If you were going on a road trip to Cape York, you wouldn’t get very far in a Suzuki Swift, and likewise a F250 may not be the best if you spend most of your day zipping around inner city Brisbane or the Sunny coast. We don’t like to label funds (or cars) as ‘good’ or ‘bad’, instead we see every vehicle as having a purpose (horses for courses), and our job is to help determine what vehicle is not just going to meet your needs, but help you achieve your goals.
What's the Right Setup for You?
Just like choosing the right car depends on the journey - short city runs versus long highway drives - your portfolio should match your:
Income needs
Growth goals
Timeframe to retirement
Appetite for risk
Broader financial strategy
Some retirees want steady income from dividends. Others prefer growth, knowing they can draw down later. And many need a blend of both.
There’s no one-size-fits-all answer - just the right combination for your lifestyle.
Get a Roadworthy Check Before You Retire
You wouldn’t bet your life savings on the outcome of a race where you only knew it was a Toyota VS a Ford – you’d want to know if was a Camry or Supra VS a Fiesta or Mustang – those details matter!
So don’t bet your retirement on a badge, let us help you take a look under the hood of your super & make sure it’s built specifically for your stage of life.
We’ll help you understand how your investments actually work, clarify your total return mix of income and capital growth, and align your portfolio with your plans, preferences and priorities.
Retirement isn't about having a fund with a shiny badge, it’s about making sure the drivetrain is right for the road you’re on.
This article is for educational purposes only and does not constitute financial advice. Please seek personalised advice from a licensed financial adviser before making any decisions regarding your retirement or investments.