Super assets to double in 10 years

By Ben Abbott

ACTUARIAL groupRice Walkerhas predicted Australian superannuation assets will more than double over the next 10 years, though it suggests this may not be enough for younger Australians to survive on when they retire.

The group says the total superannuation market will reach $1,101 billion in 2003 dollar terms in a decade, up from the current asset level of $534 billion, based on its financial modelling.

Rice Walker says this is a slower annual rate of growth than the previous decade to June 2003, which reflects the recent introduction of superannuation guarantee requirements and high investment returns over the period.

The group says it expects retail funds will experience the highest level of growth, rising from $204.5 billion to $559 billion over the next 10 years.

However, corporate superannuation funds are expected to decline over the next decade from $57.5 billion to $38 billion.

Rice Walker predicts that due to the general levels of growth, all fees charged will reduce significantly as a percentage of assets under management in all superannuation market segments over the next 10 years.

A statement from the group says based on the Federal Treasurer’s changes to superannuation policy announced last week, younger Australians are less likely to draw a full age pension when they retire.