Superannuation nest eggs have powered into the new financial year but there are warnings that planned Federal Government changes could hit long-term retirement savings.
The average balanced fund put on another 0.4 per cent last month, according to SuperRatings, to be 15.9 per cent higher in the past year.
Company chairman Jeff Bresnahan said that despite volatility in the past decade, the average rolling return for balanced funds - in which 70 per cent of Australians have their super - was 6.9 per cent a year.
Though upbeat about super, Mr Bresnahan cautioned that two policies planned by the Abbott Government would hit nest eggs.
"While investment returns continue to be strong in recent times, the possible removal of the low-income superannuation contribution and deferral of the rise in the superannuation guarantee for two years will have a longer term impact on retirement adequacy," he said.
"The continued tinkering with the superannuation system can only serve to reduce investor confidence in the system, particularly after many years of continual change."
Since the start of last year, balanced super funds have recorded just three negative monthly returns in 20 months.
The gap between super and cash continues to grow. A $100,000 deposit invested in August 2003 would now be worth $152,256.
A similar amount sunk into a balanced super fund would be worth $192,066.
In February 2009, the super fund was worth less than the cash investment.
Research by Chant West showed median growth funds, which have between 61 per cent and 80 per cent of their assets invested in growth assets, also put on 0.4 per cent last month.
In the past 12 months, median growth funds have added 16.5 per cent in value.
Chant West director Warren Chant said diversified funds had done the best last month.