The rapid growth in self-managed superannuation funds (SMSFs) may be constraining the level of growth in institutional assets, according to new research released last week.
The research, conducted by KPMG and the Australian Centre for Financial Studies (ACFS), also suggested SMSFs' growth would continue to crimp the level of growth in assets within superannuation institutions.
The research, superannuation trends and implications, found the growth of the SMSF segment since 2000 – and the ageing Australian population – provided the greatest threat to the future of superannuation institutions.
It pointed out the SMSF segment had increased by 461 per cent, and the industry funds segment by 410 per cent, against a more sombre growth in retail funds of 177 per cent, and public sector funds, 100 per cent.
Commenting on the findings, KPMG's superannuation group head Sean Hill said many superannuation institutions faced increased rollovers to SMSFs and increased benefit payments at the same time their contribution inflows were slowing.
"This perfect storm potentially threatens their future viability," he said.
The report found that superannuation institutions that fail to adapt and respond to a changing landscape face the prospect of negative funds flow, diminishing assets and terminal decline.
