Superannuation assets have started to normalise to pre-early release to superannuation scheme levels with assets totalling $3.3 trillion at the end of the June 2021 quarter, according to data.
Data from the Australian Prudential Regulation Authority (APRA) found this was a 14.7% increase in the value of total super assets due to strong investment performance and positive contributions to growth.
APRA said total contributions ($127 billion) increased 5% for the year ending June 2021. Over this period, employer contributions ($98.5 billion) increased 1.9%, of which superannuation guarantee contributions ($74.1 billion) increased 4.3%. Member contributions ($28.5 billion) increased 17.1%, of which personal contributions ($26.5 billion) increased 17.3%.
The data also found total benefit payments ($94.4 billion) declined 5.5% for the year ending June 2021.
“Over this period, lump-sum payments ($55.8 billion) declined 5.3%, and pension payments ($38.6 billion) declined 5.8% representing normalisation to pre-early release scheme levels,” APRA said.
“Consequently, net contribution flows were $34.2 billion for the year ending June 2021, a 44.3% increase over the previous year.”
Amid a challenging market environment, three super fund CIOs have warned against ‘jumping at shadows’.
The professional body is calling for the annual performance test to transition to a two-metric test, so it better aligns with the overarching duty of super fund trustees to act in the best financial interests of their members.
AustralianSuper, Rest, and HESTA agree on the need to retain and enhance the test, yet they differ in their perspectives on the specific areas that warrant further refinement.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
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