According to new data from the Australian Prudential Regulation Authority (APRA) for the March 2024 quarter, total superannuation assets have now crossed $3.8 trillion.
This marks an 11.3 per cent rise from $3.4 trillion in March 2023 and 4.2 per cent over the quarter.
“This increase was led by strong growth in APRA-regulated funds, which increased by over 4.8 per cent over the quarter, driven by strong returns from financial markets. Of the total superannuation assets, $2.7 trillion are in APRA-regulated funds,” APRA said.
Meanwhile, total contributions increased by 11.3 per cent to $177.0 billion in the year ended March 2024.
“Of this, employer contributions were $33.5 billion for the quarter and $133.3 billion for the year ending March 2024, which was 12.4 per cent higher compared to the previous year,” APRA said.
This growth in employer contributions over the year was driven by a number of factors, including the increase in the superannuation guarantee to 11 per cent on 1 July 2023, alongside a 4.2 per cent yearly increase in the Wage Price Index, and a 2.4 per cent yearly increase in the number of people employed.
Member contributions increased to $43.7 billion, which was 8.2 per cent higher than the previous year.
Benefit payments increased to $112.9 billion in the year ended March 2024, rising 18.1 per cent. APRA said the increase is attributable to lump sum payments rising by 18.4 per cent to $63.0 billion and pension payments increasing by 17.7 per cent to $49.8 billion.
Looking at financial performance, the rate of return (ROR) for entities with more than six members for the March 2024 quarter was up from 4.3 per cent in the December 2023 quarter, rising to 4.9 per cent.
APRA said: “This high quarterly return was driven by strong growth in financial markets, notably in domestic and international equities which finished the quarter near all-time highs.
“The ROR for the year ending March 2024 was 10.9 per cent, while the five-year annualised ROR to March 2024 was 6.4 per cent.”
