Rice Warner forecasts that Australia’s superannuation industry will have $7 trillion worth of assets under management by 2034, compared with $2.7 trillion at present. The firm also expects the sector to eventually be dominated by a handful of ‘megafunds’ that will dominate the Australian economy:
The report predicts that the superannuation industry will dominate the Australian economy, exceeding the amount of assets held in the banking industry.
It estimates that superannuation will grow as a percentage of the Australian economy from just under 150 per cent now to 180 per cent by 2040, despite the fact that the retirement of the baby boomers can be expected to trigger an increased drawdown of funds in the retirement phase.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
