Getting your super investment mix working for you

It is easy to treat superannuation as something that looks after itself. Statements arrive each year, balances usually increase over time, and the default investment option can feel “good enough”. For many people though, a quick review of how their super is invested can reveal room for improvement, especially as life circumstances change.​

At its core, your super is a long term investment made up of different types of assets. The way these are combined affects both how much your balance may grow and how much the value can move up and down along the way.​

1. Growth vs defensive: what is in the mix

Most super funds offer a small menu of investment options that combine similar ingredients in different proportions. While names vary, many can be grouped into a few broad categories.​

• Growth or high growth: These options hold a larger share of assets like Australian and international shares and property. They aim for higher growth over long periods, but balances can fluctuate more when markets move.​
• Balanced: Balanced options usually keep a reasonable portion in shares and property, with the rest in fixed interest and cash. They sit in the middle of the risk spectrum, seeking a mix of growth potential and some smoothing of returns.​
• Conservative: Conservative options tilt more heavily toward fixed interest and cash with a smaller allocation to shares. They tend to move around less but may grow more slowly over time.​
• Capital stable or very low risk: These options may focus mostly on term deposits and cash style investments. They prioritise capital stability and low volatility, at the cost of lower expected long term growth.​

Many funds also offer “lifecycle” or “lifestage” options that gradually reduce the growth exposure as you get older. It is worth checking whether your fund does this automatically and whether that still suits your situation.​

2. What should guide your choice

The same option is not right for everyone. A suitable mix of growth and defensive assets usually depends on a combination of:

• Age and expected working years ahead
• Comfort with market ups and downs
• Years until you expect to draw on your super
• What other assets you hold outside super, such as your home, savings, investments or a business.​

Over time, the balance between growth and defensive investments that suits you may shift. When you are earlier in your working life, there is generally more time to ride out short term market swings in exchange for the potential of higher long term growth. As you move closer to drawing on your super, protecting what you have built often becomes more important.​

3. Illustrative scenarios across different life stages

These scenarios are simplified and not recommendations, but they show how different people might think about their super settings.

• Sophie, 26: Sophie works full time and has more than three decades until retirement. She does not yet own a home but has a small emergency savings buffer and no high interest debt. With many years ahead to recover from market downturns, she considers a growth or high growth super option to seek stronger long term outcomes.​
• Liam, 44: Liam and his partner own their home with a comfortable level of equity and have invested steadily through a growth super option for many years. With around 15–20 years to go, he is thinking about gradually dialling back risk by moving some of his super balance into a balanced option while still keeping some exposure to growth assets.​
• Carla, 48: Carla has spent long stretches working part time and renting and feels she is “behind” with her super balance. She now works full time, expects to work beyond age 67 and wants to give her super more opportunity to grow. After checking that she has a basic savings buffer for emergencies, she decides a growth‑oriented option inside super may be appropriate for this next phase.​
• Neil, 62: Neil plans to reduce his work days within the next year or two and will start drawing a retirement income from his super. With a healthy balance already accumulated, he prioritises smoother returns and capital preservation over chasing maximum growth. A conservative or more moderately invested option becomes more appealing.​

Each of these strategies can be valuable, but they can also be complex to implement. Seek personal financial advice if you think they may suit your situation.​

4. Review regularly without reacting to every bump

Your super investment settings do not need constant tinkering, but they do benefit from regular check ins. A quick review every year or when your circumstances change can help ensure your super still lines up with your time frame, goals and broader financial position.​

Most funds allow you to switch options easily, sometimes as often as daily, but reacting to every short term market movement can work against you. Moving to a defensive option after markets fall and then back to growth after they recover risks locking in losses and missing the rebound.​

It is also sensible to keep an eye on how your fund stacks up on long term performance and fees compared with similar options elsewhere. If you are considering changing to another fund, that usually involves completing a Superannuation Standard Choice Form so your employer can pay contributions into your preferred fund.​

Given the size of super balances over a working life, decisions about investment options and switching funds deserve careful thought. A qualified financial adviser can help you weigh up your choices in the context of your whole financial picture.​

If you would like to discuss how your current super settings align with your goals, please reach out to the friendly team at Stream Financial.

ATO Superannuation Standard Choice Form: https://www.ato.gov.au/forms-and-instructions/superannuation-standard-choice-form Retrieved 21 November 2025