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.
Recommended for you
Proposed legislative changes to safe harbour duty could result in advisers having reduced professional indemnity costs, a joint submission by seven major licensees said.
With 66 per cent of newly established advice licensees being sole advisers, what are the risks and legal ramifications to consider when taking the plunge into self-licensing?
Despite its popularity, only 1 per cent of financial advisers say they have often discussed cryptocurrency with clients, CoreData said, fuelled by concerns of heavy legal expenses if the product goes wrong.
AFCA and the CSLR have signed a memorandum of understanding as to how they will support an efficient financial services sector via the scheme.