Dynamics of the Australian superannuation system
Professional services firm Deloitte has projected that the total assets in superannuation system will grow from the current $1.4 trillion to $6 trillion by 2030.
The Dynamics of the Australian Superannuation System: the next 20 years 2011 - 2030 report, explores a range of scenarios that show the comparative growth in superannuation assets by market segment, in the demographic makeup of post and pre-retirement funds, and what longevity means for retirement adequacy.
It looks at the impact of the Superannuation Guarantee of 9% potentially rising to 12%, population growth and the aging population.
Given that 50% of the population is expected to live beyond average life expectancy, currently 85 years of age for a male and 88 years for a female, the report looks at what outliving the retirement benefit will mean to individuals and the industry.
The industry is not a homogeneous pool of money
The Report also projects that recent strong growth in industry funds, master trusts and Self Managed Super Funds (SMSFs) will continue to grow at the expense of corporate and public sector funds. SMSFs will remain a popular superannuation option overall with its assets reaching $2 trillion by 2030.
Generational change and future retirement patterns
As Generations X and Y progressively claim a bigger piece of the superannuation pie, their share of assets will grow from about 46% in 2010 to 84% of all assets in 2030. The changes in the demographics and their needs are expected to be a game changer for the industry.
See the executive summary and media release attached.