The financial services market is projected to grow to $3.76 trillion over the next 10 years, with the superannuation market expected to achieve an average growth rate of 9.1 per cent per annum to June 2022, according to the latest DEXX&R market projections report.
DEXX&R said the recovery in the retail super market since the global financial crisis had been largely led by the self-managed super fund, industry fund and employer-sponsored master trust segments, which now report higher funds under management/advice than at June 2007.
While the SMSF and industry fund segments are each expected to grow in excess of $800 billion by 2022, the slower growth of personal super will mean it will only represent 12 per cent of total superannuation assets in 10 years time compared to 16 per cent in June 2007, the report found.
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Boosted by a continued increase in the number of retirees over the next 10 years, the retirement incomes market is projected to grow at 10.7 per cent per annum to $323 billion, with allocation pensions representing 99 per cent of total funds under management (FUM) and the remaining 1 per cent held in annuities, DEXX&R stated.
DEXX&R said the combined effect of default employer contributions shifting into MySuper products, and the transition to fee-for-service opt-in requirements for advice provided to super members, would make 2013 an uncertain year for continued strong growth in some super sectors.