Super growth on the horizon
Mark Kachor
The total superannuation market sector is projected to increase by an average annual growth rate of 11.6 per cent to $3,326 billion by June 2017, according to the latest DEXX&R Market Projections Report.
The report projects this super growth will occur in tandem with a projected average annual growth rate in the financial services market of 10.67 per cent through to June 2017.
It also projects growth in the super sector will be tempered by the effect of Australia’s ageing population towards the end of the 10-year period.
“By 2017, the number of persons aged 60 and over is projected to increase by 37 per cent to 5.2 million, with a significant increase in those aged 65 to 70,” said DEXX&R managing director Mark Kachor.
“As these persons move into retirement there will an increase in the proportion of total funds under management in the superannuation sector that are in the pension draw down phase or transferred to the retirement incomes market segment.”
Within the superannuation market segment, according to the report, industry funds and employer super will experience the strongest growth.
The industry funds sector is projected to increase to $599 billion and the employer super sector to $314 billion in June 2017.
In-force business in the risk market is also expected to grow at a rate of 12.66 per cent, from $5.88 billion to $19.36 billion in June 2017, fuelled by an increase in risk benefits held within the superannuation sector
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