APRA points to looming structural issues
The superannuation industry is experiencing increasing structural change warranting closer attention on the part of the Australian Prudential Regulation Authority (APRA).
APRA has used its annual report tabled in Parliament to point to the gradual decline in net contributions reflecting Australia’s ageing population.
“This reflects Australia’s ageing population and the maturing of the superannuation system, as a growing number of members reach retirement age and begin to draw down on superannuation assets,” the regulator’s annual report said.
“This is slowly removing one of the superannuation industry’s two primary sources of growth [positive net contributions] and poses a structural challenge to funds’ ability to maintain and gain scale,” it said.
AUTHOR
Mike Taylor
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