Investing to suit Sam's stage in life

Sam's been working since age 23, and at just 28, it's still early days in terms of saving for retirement. When you take into account Sam's likely retirement age of 67, there are still plenty of years ahead to contribute, invest and build a super balance. At this stage the main aim for members like Sam is to build and grow their savings and get their super off to a great start. Super investments with high allocations to growth assets (such as shares), are well suited to this stage. That's because they tend to offer the greatest potential for high investment returns, and that's exactly what Sam needs in order to build a strong savings balance.


Growing Sam's balance

Up until age 55, Sam will be 100% invested in the High Growth option. This phase of the Lifecycle approach is designed to help maximise your growth potential, boosting Sam's savings over time to help Sam retire with more. The High Growth investment option includes a large allocation to growth assets, such as equities, property, private equity and infrastructure, because at this age, you have the time to ride out market ups and downs. Growth investments also tend to carry higher levels of risk, but Sam need not be too concerned. That's because he's still young, and the long time remaining until retirement means Sam has plenty of time to ride out the ups and downs of investment markets. In fact, the longer Sam stays invested, the less the impact on his retirement savings from short-term dips in the market.


For more information on Sam's projected benefit and investment allocation,
download this flyer.



  • Sam's expected retirement balance*
New MySuper Lifecycle $543,000
Current MySuper Lifecycle $513,000
$30,000
  • $450,000
  • $470,000
  • $490,000
  • $510,000
  • $530,000
  • $550,000

Our new MySuper Lifecycle approach is expected to add $30k to Sam's retirement balance. But no one can reliably predict how markets will perform in the future, so the final benefit could be substantially greater. Sam could potentially end up with an extra $173k at retirement, if market conditions are favourable. Even if adverse markets were experienced just before retirement, our research indicates that Sam's super balance would still remain above or around where it would otherwise have been under the current MySuper Lifecycle investment approach.

* These superannuation projections are estimates and not guaranteed, based on key characteristics of our typical (average) 28 year old member. This includes median starting balance and average contributions and insurance arrangements at each age through to retirement at age 67 Investment returns after all tax and fees equal to the CPI + investment objective of the relevant Aware Super investment options as at 2 February 2021, assuming CPI = 2.5%. Results are based on today's dollar deflated using wage inflation (AWOTE) of 3% p.a. The upside and downside scenarios are constructed from internal projections that simulate possible future paths of returns, and reflects the top one third of possible outcomes and worst 10% of possible outcomes, respectively.