Superannuation assets fall 0.5%

Superannuation assets fell 0.5% in value over the 12 months to the end of June, according to the latest quarterly figures from the Australian Prudential Regulation Authority (APRA).

Following a quarterly decline of 4.4%, total superannuation assets stood at $3,312.5 billion at the end of June, down from $3,327.9 billion at the end of the same month in 2021.

According to APRA, the decline reflected the volatility in financial markets following global interest rate increases in response to high levels of inflation, constrained global supply chains and the ongoing uncertainty due to conflict in Ukraine.

Total assets in MySuper products stood at $884.5 billion at the end of June, which represented a quarterly fall of 4.7% and an annual decline of 1.9%. Total APRA-regulated assets fell 1.1% over the 12 months to $2,241 billion.

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Contributions, however, saw an increase of 15.2% from the previous year, totalling $146.5 billion. APRA said this was owing to rises in both employer and member contributions “likely reflecting unemployment rates having dropped to record lows over the year”.

Employer contributions rose 10.2% over the year to total $108.6 billion, which APRA said was further supported by the increase in the Superannuation Guarantee contribution rate to 10% per year, effective from 1 July, 2021.

“Personal member contributions increased by a significant 32.7% over the year to $35.3 billion, also buoyed by the accumulation of household savings during the onset of Covid-19,” said APRA.