Investing your super when retirement is far away

Deciding where and how to invest your superannuation contributions may not be something you’ve given a lot of thought to.

After all, at this stage in your career, you may be thinking that because you’re still several decades away from retirement, how you invest your retirement savings isn’t a priority.

But not doing so could become a costly mistake over the long term. In fact, because some investment asset classes can typically generate higher average returns than others, the investment options you choose over time could significantly impact the size of your savings balance and determine the standard of living you have once you permanently retire from work.

If you have a long timeframe and feel comfortable with more risk, you may consider whether a growth or high growth option aligns with your preferences.

Growth options usually hold a larger proportion of shares and other growth‑oriented investments. These can fluctuate more in the short term but may deliver higher returns over long periods.

If you prefer stability or feel uneasy about market volatility, balanced or more conservative options with higher exposures to defensive assets, such as cash and bonds, may feel more appropriate, although their average long‑term returns are typically lower than growth options.

Where to start

A good starting point is to check how your regular super contributions are currently being invested. This is easily done by logging into your account via legalsuper’s MemberAccess online portal.

When you joined legalsuper, during the sign-up process, you were given the opportunity to select from our range of investment options. legalsuper's default option is MySuper Balanced.

The MySuper Balanced option invests in a mix of growth assets, such as shares and property, with the aim of achieving strong long-term investment returns, but also includes some lower-risk assets, such as cash and bonds, to reduce short-term market volatility.

legalsuper's MySuper Balanced option, where most members are invested, returned 10.09% over the 2025-26 financial year1. This was the second consecutive year of top quartile performance.

legalsuper’s super investment options

legalsuper members have a choice of 11 investment options that provide exposure to either a broad mix of assets or single asset classes such as Australian shares, overseas shares, and cash.

In addition, members can access our Direct Investment Option, which allows you to invest and trade in hundreds of securities listed on the Australian Securities Exchange (ASX) as well as exchange traded funds (ETFs) and term deposits.

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You can invest your super in one specific option or spread it across multiple investment options.

Each of legalsuper’s super investment options includes a “return objective”, “risk profile”, “risk level”, “investor profile”, and details of its strategic asset allocation, long-term performance, and investment holdings.

The “return objective” explains what each option aims to achieve, while the “risk profile” statement details how its funds are invested. The statement also incorporates general return expectations, including the likelihood of achieving negative returns over a 20-year period. The “risk level” identifies the risk category for each investment option, which ranges from “very low” to “very high”.

Meanwhile, “investor profile” details what type of investors each option would suit most, and the minimum suggested holding time for the investment option.

The benefits of extra contributions

One of the most effective ways to strengthen your retirement savings is to use some of your additional income to make extra contributions. These can be made through salary sacrifice or personal contributions, depending on what suits you.

Depending on your circumstances, you may also be able to make use of unused concessional contribution cap amounts from previous years, subject to eligibility requirements.

Contributions up to $32,500 per financial year (including employer contributions) benefit from concessional tax treatment at 15%2, meaning more of your money stays invested. They also take advantage of compounding, which is the process where your investment earnings generate their own earnings over time.

Time is on your side at a younger age. Compounding returns can have a meaningful impact, especially if you contribute consistently.

What type of investor are you?

When it comes to choosing how to invest your super, asking yourself a few simple questions can really help.

How you choose to invest your super largely comes down to three main factors:

1. Your risk tolerance. This is simply about your personal comfort level and how much investment risk you’re willing to take to reach your long-term goals.
2. Your investment timeframe. Your super is a long-term investment, however your circumstances and investment objectives may change over time and you could choose to adjust your options to suit.
3. Your need for control. You may be happy to choose one or more investment options that are actively managed by legalsuper’s professional investment managers. Alternatively, you may want to have a hands-on approach and manage all your investments yourself.

The important thing is understanding how your money is invested and choosing an approach that aligns with your comfort level and long‑term goals.

You may want to engage a licensed financial adviser to guide you with your super investment decisions.

as the Trustee for legalsuper ABN 60 346 078 879.

For further information on legalsuper’s investment options, contact a member of the legalsuper national Member Services Team.

Send us a message, book an appointment, or call us on 1800 060 312.

^{¹ legalsuper's MySuper Balanced option return of 10.09% for the 1-year period to 30 June 2026 was ranked #7 in SuperRatings Fund Crediting Rate Survey (June 2026), based on the SR Balanced (60-76) Index. Returns are net of tax and all fees except the fixed-dollar administration fee of $0.99 per week. Past performance is not an indicator of future performance.} 

^{2 Concessional contributions are generally taxed at 15% when received by the fund. Under Division 293, the Australian Taxation Office may apply an additional 15% tax to some or all of your concessional contributions if your income and concessional contributions exceed the Division 293 threshold, currently $250,000 per year.}