POWERED BY MOMENTUM MEDIA
Next 10 years tough for personal superannuation
Personal superannuation is set to play a smaller role in the total super market over the 10 years to June 2022, according to the latest market projections report from DEXX&R.
At June 2007 the personal super segment represented 16 per cent of total super access. DEXX&R predicts this figure will drop to 12 per cent by June 2022.
With the highest proportion of discretionary contributions in the retail super sector, personal super is sensitive to market returns, experiencing a lower rate of recovery than the self-managed super fund, industry fund and employer-sponsored master trust segments since June 2007, DEXX&R stated.
According to the report, funds under management/advice (FUM/A) for personal super were at $147.3 billion in June 2012, 21 per cent lower than the $185.7 billion recorded in June 2007.
Despite this, DEXX&R predicts personal super to recover slightly during 2013 following positive returns for most asset classes during 2012.
The total super sector is projected to increase by an average of 8.6 per cent per annum to $3.76 trillion over the next 10 years, DEXX&R stated.
Retirement income is projected to grow at 10.7 per cent per annum to $323 billion, while group risk in-force premiums are projected to grow at 11.2 per cent per annum from $3.5 billion to $10.2 billion by June 2022.
DEXX&R said the combined effect of default employer contributions shifting into MySuper products and the transition to fee-for-service opt-in requirements for financial advice in super would make 2013 an uncertain year for continued strong growth in some super sectors.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.24 3 y p.a(%)
4
Pengana High Conviction Equities B
40.36 3 y p.a(%)
5
Pengana High Conviction Equities A
40.34 3 y p.a(%)
