Saving the day: Merger activity and regulation changes benefit industry asset performance

Australia's superannuation system forms the backbone of the nation's pension system. Three pillars make up the pension system: a means-tested age pension, compulsory super contributions, and voluntary super contribution schemes. The Superannuation Guarantee scheme currently requires employers to contribute an amount equal to 9.5% of their employees' incomes to the employees' choice of superannuation fund. This system has prompted significant growth in the Superannuation Funds industry, which has become the fourth-largest pension market in the world.Industry revenue is forecast to grow at an annualised 7.9% over the five years through 2017-18, to $288.9 billion. This includes a projected 5.9% revenue increase in 2017-18...read more.

Industry Statistics & Market Size
Revenue
$289bn
Annual Growth 13-18
7.9%
Forecast Growth 18-23
Profit
Employment
10,341
Businesses
192

Industry Threats & Opportunities

  • Several major mergers have reduced the number of enterprises operating in the industry
  • Regulatory changes have had a significant effect the industry’s performance
  • Superannuation assets are projected to grow and become a crucial aspect of the financial system
  • Industry Report - Industry Locations Chapter

    Superannuation funds are located mainly within the financial hubs of New South Wales and Victoria. These states together account for an estimated 86.2% of enterprises in the industry. Naturally, superannuation funds follow population distribution as it provides a service for the labour force, but at the same time many of the outsourced superannuation investment consulting and management services, and administration services are concentrated within the financial centres of New South Wales and Victoria. This allows for accessibility and convenience when working with these third parties.The remainder of the industry is fairly evenly distributed across Australia. Queensland accounts for the most significant proportion of the remaining industry enterprises with an estimated 5.9% o...purchase to read more.

    Additional Insights for the Superannuation Funds Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Superannuation Funds Industry are

  • Establishment of brand names
  • Willingness to outsource when appropriate
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as All Ordinaries index and Total employees in the labour force in the Superannuation Funds industry impact industry performance..

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    What's in this report

    What is the Superannuation Funds Industry?

    The industry provides retirement benefits to members and includes both large and small funds. Industry revenue consists of contributions and net investment revenue combined. Investment revenue is income earned from investments and capital gains or losses. Enterprises represent the major funds (i.e. super funds with five or more members) and establishments include all super funds.

    Industry Products
  • Corporate funds
  • Industry funds
  • Public sector funds
  • Retail funds
  • Small funds
  • Industry Activities
  • Operating approved deposit funds
  • Operating corporate funds
  • Operating public sector funds
  • Operating industry funds
  • Operating funds
  • Operating self-managed superannuation funds
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • All Ordinaries index
  • Total employees in the labour force
  • year bond rate
  • Real household discretionary income

  • Current Performance
  • Fund numbers
  • Regulation and taxes
  • Retail versus industry
  • Pressure on fees
  • Chart: Revenue Growth

  • Industry Outlook
  • The future of super
  • Regulation
  • Consolidation
  • Table: Superannuation Funds Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Superannuation Funds Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Custody, Trustee and Stock Exchange Services
  • Financial Asset Investing
  • Life Insurance
  • Superannuation Funds Management Services

  • Products & Services
  • Small funds
  • Retail funds
  • Industry funds
  • Public sector funds
  • Corporate funds
  • Chart: Superannuation Funds Industry Products and Services Segmentation

  • Demand Determinants
  • Compulsory contributions
  • Voluntary contributions

  • Major Markets
  • People aged 50 to 59
  • People aged 35 to 49
  • People aged over 65
  • People aged 60 to 65
  • People aged under 35
  • Chart: Major Market Segmentation for the Superannuation Funds Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Operating expenses
  • Chart: Cost Structure Benchmarking – Sector vs Superannuation Funds

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Superannuation Funds Industry

  • Industry Globalization
    AustralianSuper, AMP Limited, Commonwealth Bank of Australia, State Public Sector Superannuation Scheme,
  • Table: AustralianSuper - financial performance
  • Table: AMP Limited - financial performance
  • Table: Commonwealth Bank of Australia - financial performance
  • Table: State Public Sector Superannuation Scheme - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Superannuation Funds Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Superannuation Funds Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total Assets (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Apra
  • The Australian Prudential Regulation Authority regulates the Australian financial services industries, overseeing banks and most members of the Superannuation Funds industry.
  • Defined Benefit
  • A pension plan where the benefit amount paid upon retirement is specified based on a combination of factors from an individual employment history. The investment risk is borne by the fund or employer.
  • Defined Contribution
  • A pension plan with regular contributions made to the fund, where benefits are paid based on the accumulation of contributions and investment returns. The investment risk is borne by the employee.
  • Non-Public Offer
  • Superannuation funds where membership is limited employees of a single employer or group of employers.
  • Preservation Age
  • The age at which an individual can access their superannuation.
  • Self-Managed Superannuation Funds (Smsf)
  • ATO-regulated superannuation entities that have less than five members, all of whom are trustees or directors of the corporate trustee.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Superannuation Funds market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Superannuation Funds:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Superannuation Funds market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Superannuation Funds, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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