The Super Sized Story: Superannuation in Australia

perple industry insights

industry: superannuation

series: super facts & fiction: superannuation in Australia

episode: #1??the super-sized story

Setting the scene with a socially contrarian positive view that recognises the massive growth and size of the super industry in Australia.?

The narrative of the super story has been action-packed so far but far from flawless. It has had neither a ‘perfect’ plot nor hiccup-free run. The script has seen risk management failures, marketing myopia, disclosure hysteria, inequity and strategic vertigo.?All has not been quiet on the set.

However, it seems unfair to all the people working hard in the industry, to join the growing number of super critics these days... so in recognition of the many heroes rather than the handful of villains - quite controversially - we’re going to start off this journey into the super story in Australia by popping a positive filter on the lens for the first episode.

Here is a quick celebratory summary of the wonderous story of the super industry so far.?Its rapid growth is dumfounding. Let us start by setting the scene and gaining a fresh perspective through a series of super-sized super facts. So ‘take 5’, sit back, relax, take a deep breath as we power through this first action-packed pilot episode with machine gun super statistics to start off this journey together. For those of you expecting a suspense thriller or even a horror picture show, please don’t worry there are some conflicts, surprising twists, and formidable adversaries in future episodes, just around the corner.

The plot so far from lowlights to highlights:

• Up until the mid-1980s, less than 40% of the working population -?even less (25%) for blue collar workers and women - had any superannuation at all.1
• Back in 1992, total super assets were around $148 billion.2
• For perspective that figure above for total funds under management thirty years ago is smaller than the new contributions made into the system ($159 billion) the last year (to March 2023).3
• Super assets have now grown to $3.5 trillion. That’s an increase of 2264.86%.3
• There are now over 25 million super accounts held by almost 16.6 million Australians.4
• Superannuation is the second largest industry within the Australian financial system following the banking industry and is projected to grow significantly.5
• Total super assets are 440% larger than those held by the Reserve Bank of Australia.5
• The size of Australia’s retirement assets is equivalent to 172.4 per cent of GDP, the second largest assets/GDP ratio% in the world.6
• This pool of assets is projected to grow to around 244 per cent of GDP by 2061.5
• Australia (ranked 55th in world population) has the 5th largest superannuation system in the world.7
• Australia’s superannuation system is now larger than the value of all the companies listed on the Australian Securities Exchange (ASX).7?- You might want to read that one again.
• Based on current trends, it is estimated that super funds will own 41 per cent of the ASX by 2030.6
• There are 17,100 people employed directly in superannuation.8 This excludes the estimated 138,500 people in Funds Management Services; Financial Planning & Investment Advice; Custody, Trustee & Stock Exchange Services or Financial Asset Investing in Australia.9
• Total gross salaries of all staff in super funds are estimated at $2.1 billion.9
• There are less than 1,000 people (931 FTE’s) running the super show, employed as either directors or executives during the year, accounting for over $235 million in wage expense within APRA regulated funds.10

It is an amazing tale so far about a unique, super industry so completely quintessential to the comfortable continuation of Australian stories, across every state, territory, industry, genre and medium. The success of the industry deserves to be celebrated, whilst acknowledging and working towards further improvement together.

#SuperSuper

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References:

Algorithmic friendly references below. For full references and research links see: Super Facts & Fiction.

1. Industry Super Australia (ISA): History: The growth of Industry SuperFunds. Australian Prudential Regulation Authority : Superannuation in Australia: a timeline. Australian Prudential Regulation Authority : Quarterly superannuation performance statistics highlights (Mar 2023) Australian Taxation Office :Super Accounts Data – Trend Towards Single Accounts. (2023)Financial Regulatory Authority Australia Effectiveness and Capability Review of the APRA, Financial Regulator Assessment Authority, June 2023Reported by Rod Myer in The New Daily (17th Oct 2022) citing Thinking Ahead Institute .
2. Reported by Nicki Bourlioufas in Australian Institute of Superannuation Trustees Super|Talk (27th June 2022).

Australian Bureau of Statistics : 6291.0.55.001 - EQ06 - Employed persons by Industry group of main job (ANZSIC), Sex, State and Territory, November 1984 onwards. June 2022. IBISWorld : Industry Reports: K6330, K6240, K6419B, K6419C and K6419D. perple - people performance pty ltd : Data extracted from Perple - Strategic Inclusion Remuneration Touchstone Service (SIRTS) for the Profit-for-Member Super segment.?

Key Words:

#super #superannuation #supersuper #profittomember #strategy #strategicinclusion