DEXX&R projects the total financial services market will grow by 8 per cent per annum to reach $3,372 billion by December 2021.
The 10-year rate of growth has fallen from 8.3 per cent when the last projection was made in June 2011, according to the latest DEXX&R Market Projections report.
The superannuation sector is projected to grow from its current $1,380 billion to $2,862 billion by December 2021 – a growth rate of 8.5 per cent per annum, according to the report.
But some sectors of the superannuation industry are faring better than others, according to the report.
While funds under management/advice (FUM/A) for self-managed superannuation funds, industry super funds and employer-sponsored master trusts have recovered to be higher than FUM/A at June 2011, the personal super segment is struggling.
"The personal super segment has experienced a lower rate of recovery, and at December 2011 FUM/A was 21.7 per cent lower than at June 2007.
"The change in relative FUM/A between these sectors indicates that the personal super segment will be a smaller part of the superannuation market in future years," the report said.
Allocated pensions are projected to make up 99 per cent of the total funds under management in the retirement market by December 2021, and the market itself will grow by 10.8 per cent per annum to reach $312 billion, according to DEXX&R.
The report projects individual risk in-force premiums will grow at a rate of 12.1 per cent per annum, from $9.9 billion to $30.9 billion in December 2021. Group risk in-force premiums are projected to grow at 11.4 per cent per annum, from $2.3 billion to $7 billion.
