Your investment mix

For many of us, super is our second largest investment outside our home. But while we’ll spend ages searching for the perfect property, when it comes to investing our super, many of us just tick a box.

But taking charge of your super and getting the right investment mix can really make a difference.

The AMP ad provides a worked example of how much of a difference having the right investment strategy over the course of your working life can make to your final super balance.

It looks at the impact on one person’s end balance if they chose to adopt a capital stable investment mix versus setting their investment strategy to be more aggressive, with greater exposure to growth assets, over their working life. Full details and assumptions are as follows:

Details and assumptions


  • Age: 20
  • Employment status: working full time from age 20 - 60
  • Contributions: 9% compulsory contribution only
  • Salary: average weekly earnings based on Australian Bureau of Statistics (ABS) data

Without strategy to select investment mix

With strategy to select investment mix
Investment mix: selects and retains capital stable (conservative) investment option from age 20 to retirement at age 60.

Capital stable return used is 0.70% p.a. after fees, tax and inflation.

The fees modelled are based on average AMP retail fees from Flexible Lifetime Super and inflation is modelled at 2.5%. 		Investment mix: selects and retains aggressive investment option with greater exposure to growth assets from age 20 to retirement at age 60.

Growth return used is 4.74% p.a. after tax, fees and inflation.

The fees modelled are based on average AMP retail fees from Flexible Lifetime Super and inflation is modelled at 2.5%.

Super balance at retirement: age 60 $206,000

Super balance at retirement: age 60 $500,000

Difference the investment mix strategy makes over working life: $294,000

All details and assumptions have been verified by Rice Warner actuaries, an independent third party.

Get advice to see what's right for you

Although the numbers in the example are compelling, it doesn’t necessarily mean everyone should change their investment mix to growth assets.

Getting the right investment mix for you is a very personal consideration – it depends on your approach to investing and attitude to risk.

Depending on your risk profile, conventional wisdom dictates that you would normally start your super investment with a bias towards growth or aggressive assets (such as shares), and move it as you grow older into more conservative assets (such as cash and fixed interest). However, with life expectancy increasing and our super needing to last longer than ever before, that wisdom is now being challenged and you may need to consider holding growth assets in your portfolio for longer.

The key thing is to think about your super as an investment and work out what’s right for you.



For help understanding your investment profile speak to a financial planner accredited by AMP.
AMP # 1 for super is based on assets under management (Plan for Life March 07 and DEXX&R March 2007). Find out more about why AMP for super.


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What you need to know
Any advice on this page is provided by AMP Superannuation Limited, ABN 31 008 414 104, AFSL No. 233060, RSE Licence No. L0000550.

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