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1 December 2025

The power of compounding

Compound earnings can turn regular superannuation contributions into a substantial nest egg over time. Your super is invested to generate earnings, which also attract earnings which help accelerate growth, like a snowball rolling down a hill. You are not working harder but your super is, as your balance benefits by growing faster. And if you’re paying less in fees and insurance costs out of your super it stands to reason the balance you have invested is even larger. That’s one half of the winning compounding combination – how much you have invested. The other is time. The longer your money stays invested in super, the more it can compound and grow. 

Low fees and insurance premiums matter

Fees and premiums matter to your super balance not just in the year you pay them but over time. The Federal Government’s MoneySmart site has a superannuation calculator Opens in new window to show how even small differences in fees can make a big difference to the amount of money you'll have when you retire. Any dollars spent on fees and insurance premiums miss out on this compounding power over time so it’s important to keep an eye on what’s coming out of your super account. Even with low premiums it’s a good idea to check you are not paying for insurance cover you do not need – log in to Member OnlineOpens in new window or the app to check. 

Make sure you understand the different types of life insurance – read our article Insurance when it really countsOpens in new window – and check the PDS and In Detail bookletOpens in new window  for the section of the Fund for which you are a member. 

If you need help working out what you need speak to one of our friendly Contact Centre agents – call 1800 000 086. If you need financial advice, they will set up your appointment. The cost of financial advice on key aspects of your superannuation – like insurance – is included in your membership of ANZ Staff Super.

ANZ Staff Super members pay very low fees and life insurance premiums

In its most recent comparative surveys independent research house Chant West rated ANZ Staff Super for fees and insurance costs:

  • Number 1 for best-value life insurance in a super fund - Chant West Super Fund Insurance Premium Survey July 2025 (Employee Section); and
  • Number 1 for lowest fees - Chant West Fee Survey September 2025 (Employee Section).

Time in the market matters

The longer your super stays invested the more you benefit from compounding - compounding works best when uninterrupted. Every time you pull out of the market you break that cycle and risk missing critical growth periods – which are often individual days of upside in protracted periods of volatile downside. Being in the market on those specific days though can more than double the return of missing those top performing market days according to global equities powerhouse Blackrock2 (one of our International Equities managers).

Key takeaways

  1. Start early Time is half the magic in compounding. Even small contributions grow significantly over decades. That said, the best time to start is now.
  2. Keep costs low The amount you have invested is the other half of the magic. Low fees and insurance premiums help amplify returns by boosting your market exposure. Staying with a fund with low costs ensures more of your super stays invested and harnesses the compounding effect over the long term.
  3. Stay invested Market fluctuations are normal but switching your super interrupts compounding, especially during periods of volatility. Consistency pays off.


1. ANZ Staff Super members enjoy financial advice on key aspects of their superannuation at no additional cost.
 

2. Navigating retirement savings during volatile markets - Blackrock Opens in new window