This is due to several factors including the extraordinary growth of the self-managed super fund segment, an ageing Australian population, rising operating costs, industry consolidation and 'auto-consolidation' as well as other consequences of the Stronger Super reforms. The challenge for superannuation institutions is to adapt and respond to this changing landscape.
- In the decade to June 2012, Australian superannuation assets grew by approximately 10.5 percent pa, reaching $1.4 trillion.
- Australia has overtaken the Netherlands and Canada to have the fourth largest pool of retirement fund assets in the OECD.
- Almost one third of superannuation assets now reside in self-managed superannuation funds.
- Superannuation membership in Australia is rapidly ageing.
- There is a pronounced and persistent trends towards consolidation of superannuation institutions.
- The phenomenal growth in the average size of superannuation institutions has yielded disappointing results in terms of lowering total costs per member.