Super powers: Merger activity and regulation changes boost industry asset performance

Australia's superannuation system underpins the nation's retirement income system. Three pillars make up the pension system: a means-tested age pension, compulsory super contributions and voluntary savings. The Superannuation Guarantee scheme requires employers to contribute an amount equal to 9.5% of an employee's income to the employee's choice of superannuation fund. This system has supported significant growth in the Superannuation Funds industry, which has become one of the largest pension systems in the world.Industry revenue is expected to grow at an annualised 0.8% over the five years through 2019-20, to $187.0 billion. This includes an anticipated 9.6% rise in revenue in more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Several major mergers have reduced the number of enterprises operating in the industry
  • Global economic uncertainty has had a significant effect on the industry’s performance
  • Superannuation assets are projected to continue growing as a source of infrastructure funding
  • Industry Report - Industry Analysis Chapter

    The Superannuation Funds industry’s revenue has been driven by sharemarket performance over the past five years. Investment income, particularly from equities, is often a key factor influencing the performance of the industry, with a steady stream of contributions adding to the scale of investment returns for super funds. Investment income has fluctuated over the period, as uncertainty surrounding global economic growth and financial markets has caused significant market volatility among investors. Industry revenue is expected to grow at an annualised 0.8% over the five years through 2019-20, to $187.0 billion. This growth includes an expected rise of 9.6% in 2019-20 as sharemarket indices post record highs. How...purchase to read more.

    Additional Insights for the Superannuation Funds Industry

    IBISWorld has determined the most important Key Success Factors for the Superannuation Funds 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 primarily consists of investment revenue. 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 SMSFs
  • 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 Planning and Investment Advice
  • Life Insurance
  • Superannuation Funds Management Services

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

  • Demand Determinants
  • Compulsory contributions
  • Voluntary contributions

  • Major Markets
  • People aged 60 and above
  • People aged 50 to 59
  • People aged 35 to 49
  • 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
  • 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, QSuper,
  • Table: AustralianSuper - financial performance
  • Table: AMP Limited - financial performance
  • Table: QSuper - 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
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Total Assets (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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 that limit membership to employees of a single employer or group of employers.
  • Preservation Age
  • The age at which individuals can access their superannuation.
  • Self-Managed Superannuation Funds (Smsf)
  • ATO-regulated superannuation entities that have fewer than five members, all of whom are trustees or directors of the corporate trustee.
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    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:
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    • 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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