Australia’s superannuation sector is being held back by its slow adoption of technology, Financial Services Council chief executive, John Brogden believes.
While super has been “working well” and “delivering huge benefits” to the Federal Government and the financial sector, Brogden said IT could boost those benefits even further.
“By and large the superannuation sector is effectively allocating capital back into the Australian financial system,” he said.
“Australia’s savings rate is three times higher than it would have been without superannuation. Today, Australia’s superannuation sector is worth $1.8 trillion, it will move to $3 trillion in 2025 and to $5.5 trillion by 2030.
“Our industry hasn’t positioned itself to fully take advantage of technology. However, this is changing as super funds want to remain innovative and competitive.
“Over the past few years, the super industry has been focused on compliance. This focus is shifting to innovating through technology.”
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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