Super set to soar
Australia's superannuation sector is expected to experience significant growth in the 2014/15 financial year, with revenue set to reach $14 billion.
The IBISWorld forecasts industries to rise and fall in the next financial year report, revealed super funds would continue to benefit from a large pool of accumulated savings in the system, IBISWorld general manager.
IBISWorld general manager, Daniel Ruthven predicted that the industry would experience revenue growth of 10.5 per cent in the next 12 months, with more than $800 billion in funds under management.
"Our expansive superannuation system is delivering strong returns for both investors and the funds themselves," he said.
"Compulsory contributions increased at the beginning of 2013/14, further driving the amount poured into superannuation.
"This has been coupled with strong returns in the financial markets over the past five years, bolstering consumer sentiment and allowing for some increase in the demand for investment options carrying greater risk."
The report also forecast strong growth in the mortgage sector with revenue set to top $80 billion, driven by favourable lending conditions, declining interest rates and government assistance packages aimed at boosting demand for property.
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