Can a Lifecycle investment approach grow your super faster?

Considering your super investment options carefully can help put more in your pocket for retirement.

The Super Investment Dilemma

So – here's the score.

The way your superannuation is invested can make a big difference to how much you end up with in retirement.

Differences in returns, fees and other costs may not mean as much right now. But over time, they can add up significantly!

There are two main super investment strategies that most people use: a Lifecycle approach or a static investment option.

Let's take a closer look at how they work.

Lifecycle Investment Options

MySuper is a government-introduced superannuation product offering a simple way to grow your super balance. It's designed as the default option for members who don't actively choose an investment strategy when joining.

Most super funds offer a MySuper investment option, which is either:

• Static – your money is invested in a mix of assets (like shares, property, and cash) that stays the same over time; or
• A Lifecycle approach – your investment mix changes over time as you get older.

Aware Super's default MySuper option is a Lifecycle approach.

A Lifecycle approach typically aims to maximise returns in your younger years by investing in more growth investments, gradually shifting to more defensive investments to help protect your savings closer to retirement.

So a typical pattern would see you invested in a higher growth investment option while you're younger.

Higher growth options typically have higher returns over the long term, but are riskier, meaning they move up and down in value more in the short term.

If you're still a long way from retirement, short-term market ups and downs aren't a big worry – you've got time to bounce back and grow your super over the long run.

You may have decades left to invest your money, while someone closer to retirement has less time to recover if markets fall.

With a lifecycle approach, your super is moved from more growth assets, like shares – which move up and down a lot – into more defensive assets like bonds which tend to be more stable, as you get closer to retirement.

This is designed to help safeguard your savings by reducing exposure to market falls.

Aware Super's MySuper Lifecycle auto-adjusts your investment mix, depending on your age.

You don't need to take action yourself; the fund's investment team will adjust your investment mix over time.

The aim is to maximise returns when you're young and during your working years, and even into your 50s, and then to reduce the impact on your savings of any large market falls as you grow closer to retirement.

The benefits of this approach can be substantial.

Aware's research shows that in the 4 years since making the High Growth option the default for younger members as part of the MySuper Lifecycle approach, an additional $3.9 billion has been added to 800,000+ MySuper members, compared to if these members had been invested in the industry median MySuper.¹

Of course, it's important to remember that everyone's investment needs are unique. It may be worth speaking with a financial adviser to determine whether this is right for your needs.

Single Investment Options

Most super funds invest their members' money in a single diversified investment option that stays the same over time.

The default single investment option with many super funds is a Balanced option. A Balanced option typically has fewer growth assets than a High Growth option, and more than a Conservative option.

There are a lot of Aussies who have their super in a single diversified investment option.

However, they may not realise they may be missing out on growing their super more aggressively by investing in more growth assets when they are young – during some of their best earning years!

Assessing the benefits and risks

A Lifecycle Investment approach is different from a single investment option strategy.

A Lifecycle approach can allow you to maximise the growth of your savings early in life and through your peak earning years.

Lifecycle members could potentially retire with more because their savings have been invested in a higher growth option for longer.

And because a Lifecycle approach automatically looks to de-risk your investment mix with age, risk is gradually scaled back over time as you grow closer to retirement, without you having to do anything.

A single or static investment option doesn't change your investment mix over time.

Taking your next steps

First things first. Check your current super investments and see if you're set up with an investment option that suits your current needs.

If you'd like to learn more about superannuation and investing, Aware Super provides a range of learning resources. These can help you get educated on basic investments, maximising your retirement funds and more.

Finding an appropriate investment option may also involve changing your super fund.

You can use Aware Super's retirement calculator to look at your projected investment performance.

With Aware Super, you can make your super work smarter for your future

1. Aware Super's High Growth option return over 10 years to 30 June 2025. SuperRatings Fund Crediting Rate Survey, June 2025. Based on the SR50 Growth (77-90) Index. Returns are after tax and investment management expenses but before the deduction of administration fees. Past performance is not an indicator of future performance.
2. Aware Super's High Growth option return over 10 years to 30 June 2025. SuperRatings Fund Crediting Rate Survey, June 2025. Based on the SR50 Growth (77-90) Index. Returns are after tax and investment management expenses but before the deduction of administration fees. Past performance is not an indicator of future performance.

General advice only. Consider your objectives, financial situation, or needs, which have not been accounted for in this information and read the PDS and TMD at http://aware.com.au/pds before acting. Issued by Aware Super Pty Ltd (ABN 11 118 202 672, AFSL 293340) trustee of Aware Super (ABN 53 226 460 365).