Australia’s superannuation system has built one of the world’s largest retirement savings pools, but PwC has warned the sector’s next challenge is proving it can convert scale into better retirement outcomes rather than simply accumulating assets.
In a new Value in Motion report, PwC said Australia’s super system now holds $4.5 trillion in assets and is on track to become the world’s second-largest retirement savings pool by the 2030s, underscoring the system’s growing global significance.
At the same time, the sector has continued to consolidate rapidly, with the number of APRA-regulated funds falling from 158 to 81 over the past five years.
But PwC argued the success of the accumulation phase has sharpened attention on a more difficult question: whether the system is ready for a wave of retirees who need confidence, income certainty and support navigating increasingly complex decisions.
“Australia has built a world-class system for growing retirement savings. But is it ready for what comes next?” PwC said in the report.
The firm said 2.5 million Australians are expected to retire over the next decade, while the number of people needing complex financial advice is projected to rise 70 per cent.
That demand, however, is set against a financial advice workforce of only around 15,000 advisers, creating what PwC framed as a structural mismatch between retirement needs and available support.
PwC said the consequence is that many retirees are still approaching retirement with caution, often drawing only the minimum pension and leaving much of their super untouched.
“Many retirees today will die with most of their wealth unspent,” the report said. “Some are being cautious. Some want to leave money to their family. Others simply find it easier to draw the minimum pension and leave the rest alone.”
It said the “common thread” was a lack of confidence among members about how much of their savings they could safely spend in retirement.
That framing adds to a growing industry debate about whether the super system’s next phase will be judged less by asset growth, scale and merger activity, and more by how effectively trustees can support members through decumulation.
PwC said the sector’s task is shifting from building balances to helping members retire at the right time, with enough certainty around income security and quality of life.
“For superannuation, what matters to members is confidence in retirement, income security, and quality of life,” the firm said. “Members want to retire at the right time and not work longer than they need to.”
The commentary lands as policymakers and industry bodies intensify their focus on retirement income solutions, trustee obligations and the accessibility of guidance for members who may not be able to obtain full personal advice.
It also reinforces a broader theme emerging across the sector: that scale alone may not be enough to justify consolidation unless it translates into stronger retirement offerings, simpler member experiences and more practical support at the point members begin drawing down savings.
PwC’s report forms part of its broader Value in Motion research, which argues that financial institutions are being reshaped by changing customer needs, technology and demographic pressures.
In superannuation, that means the system’s next test may be less about how much money it holds, and more about whether members feel equipped to use it.
