Industry Analysis & Industry Trends
Australia's superannuation system forms the backbone of the nation's envied pension system. Three pillars support Australia's pension system: a means-tested age pension, compulsory super contributions (i.e. the Superannuation Guarantee) and voluntary contribution schemes. The Superannuation Guarantee requires employers to contribute funds equal to 9.0% of their employees' incomes to the employees' choice of super fund. This system has resulted in the Australian Superannuation Funds industry growing to become the fourth-largest private pension fund market in the world, with almost $1.3 trillion in assets as at June 2012.
Although the financial crisis stripped much of the industry's investment income in 2007-08 and 2008-09, the industry is forecast to grow an annualised 21.4%... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry is characterised by low concentration. IBISWorld estimates that the four largest superannuation funds account for less than 15% of industry assets. Due to the large and increasing size of the industry, it becomes extremely difficult for a player to accumulate substantial market share. As such, the dynamics of the industry indicate that despite enterprise numbers falling (excluding small funds and self-managed super funds), industry concentration will remain low.
Concentration remains low due to strong growth in the number of super funds available. Continued growth in the number of fund members is also affecting concentration levels due to increased demand for superannuation-related services and increasing numbers of DIY funds... purchase to read more