Savings outside super to accelerate

11-Jul-2017

By Megan Tran

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Growth in funds both inside and outside super would be favourable over the next 10 years, according to the latest report from research firm DEXX&R.

Retail savings were expected to be the strongest performer in funds under management and advice of all market segments over the next decade, expanding at 9.7 per cent a year to $504 billion by 2026, the data revealed.

The report said that growth was due to the expected outflow of funds from super as a result of the 2016 superannuation changes and the redirection of discretionary contributions to super.

“Within the retail investment segment, master fund and wrap platforms are projected to be the major beneficiaries of the increase in inflows,” it said.

Super in the accumulation phase was expected to grow at 6.3 per cent a year, with pension-phase assets rising by 5.9 per cent annually.

Employer and industry super were the sectors likely to record the strongest growth over the decade, with employer super assets rising by 11 per cent and industry funds surging by 34 per cent in the accumulation phase, the report said.

The retirement income market was also anticipated to grow at an annual rate of 5.9 per cent to $1.37 trillion, with industry and public sector funds also leading the way in this market.

The two fund types were expected to have 11 per cent of total retirement income assets by 2026, according to the research firm.

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