The longer your super stays invested, the more it will grow!
We are invested for the long term and so are you. By the time you retire, it is likely that your super has been invested for at least 30 to 40 years.
Depending on your investment option, we invest your super in a range of different assets like shares, property, toll roads, airports and fixed interest, so that over time, it can grow more than if it was sitting in a bank account.
The money in your account, plus all your contributions, will earn investment returns over time. The best part is these investment returns then compound.
What is compounding and how does it work with super?
Simply put, compounding happens when the money you earn on an investment is reinvested, so you gain returns on both your original amount and any returns you’ve already earned. Thanks to compounding, these returns will generate more returns year after year, helping your balance grow faster over time.
The power of compounding over time
In 1984, if Alice had invested $10,000 in our Growth (MySuper) investment option, and she didn’t make any more contributions…
Forty years later, Alice’s investment would have grown to around $300,000*, as shown in the chart below.
Compounding returns through investment in Growth (MySuper)
*The Growth (MySuper) investment option has delivered an average annual return of 8.87% since inception in 1984 to 30 June 2024. This example is for illustration purposes only. Balances have been calculated using financial year returns compounding annually. Investment performance is based on the crediting rate, which is the return minus investment fees, taxes, and until 31 January 2020, the percentage-based administration fee. Excludes fees and costs that are deducted directly from members’ accounts. Past performance is not a reliable indicator of future performance.
The impact of compounding is significant over a long time and the best part, is that Alice didn’t need to do anything – it happened automatically.
Allowing your super to continue to compound its returns is a simple yet powerful way to plan for your future.
If you’d like to learn about other ways you can take advantage of your super account, you can speak to our Advice team.
This information is about Cbus Super. It doesn’t account for your specific needs. Please consider your financial position, objectives and requirements before making financial decisions. Read the relevant Product Disclosure Statement (PDS) and Target Market Determination to decide if Cbus Super is right for you. Call 1300 361 784 or visit cbussuper.com.au.
United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 as trustee for the Construction and Building Unions Superannuation Fund (Cbus and/or Cbus Super).