Retail Superannuation Funds in Australia - Industry Market Research Report

Return With Interest: Growth in Funds Under Management Has Supported Industry Recovery

The performance of the Retail Superannuation Funds industry has fluctuated significantly over the past five years. Industry revenue is expected to rise at an annualised 7.8% over the five years through 2021-22, to $75.3 billion. This trend includes a decline of 32.8% in the current year, following significant growth in 2020-21 as the industry rebounded from the investment losses incurred in 2019-20. Industry revenue is highly volatile, and fluctuations in investment returns can cause revenue shocks. Due to this volatility, revenue is not an accurate representation of industry performance and size. Funds under administration (FUA) provide a better indication, and these are expected to grow at an annualised 3.5% over the five years through 2021-22, to $773.6 billion. Guaranteed super contributions have supported the industry's growth, but the fallout from the Financial Services Royal Commission, investment losses during the COVID-19 pandemic and APRA's early super release scheme have weighed on revenue over the period.

Industry firms provide retirement benefits to the general public on a commercial and for-profit basis. Funds with four or less members are excluded from the industry. Industry revenue is primarily made up from investment revenue.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.