• Industry: Financial Services, Superannuation
  • Type: Business and industry issue
  • Date: 30/11/2012

Evolving Superannuation Industry Trends 

The Australian superannuation system is a vital component of the Australian financial sector and the broader economy. Notwithstanding the resounding success of the Australian superannuation system from a global perspective, many superannuation institutions are now facing a challenging environment in which to grow their membership and assets.
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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.


Key insights

  • 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.