It was the fifth time in 30 years that the median growth fund delivered a negative return and followed a bumper year in 2021 when returns were about 18 per cent.

It follows the release by Choice of data showing the level needed for a comfortable retirement.

Choice said a couple currently aged between 55 and 59 who owned their own home and who would budget for $64,000 a year in spending in retirement would need about $402,000 at 65, on top of what they could receive through the aged pension.

“Our targets found that middle-income people will need less for a comfortable retirement than the existing Association of Superannuation Funds Australia retirement standard suggests,” Choice said.

“Similarly, a large majority of retired Australian are happier than they were during their working life. The fact that most retirees maintain their spending levels are satisfied with their lifestyle suggests that using actual spending, rather than aspirational targets, is a more useful measure.”

For a couple aged 65 to 69 to reach a comfortable retirement with spending of $56,000 a year, they would need to have $352,000 on top of the aged pension.

Chant West said the step backwards in super balances for the financial year was nothing to worry about.

“The median growth fund is still 7.5 per cent ahead of its high point at the end of January 2020 before the Covid crisis took hold,” Chant West senior investment research manager Mano Mohankumar said.