Arabic version: نظام التقاعد الأسترالي يقترب من اختبار 5 تريليونات دولار
According to ABC News, Australians’ collective superannuation savings are about to exceed $5 trillion, although data lags and market movements make the precise timing uncertain. For a population of 28 million, that equates to an average of $178,571 per person. Australia’s private retirement savings pool is projected to surpass those of Canada and the United Kingdom in coming decades, becoming second only to the United States.
Australia uses a defined-contribution system, meaning workers know the compulsory contribution rate — 12 per cent — but not the retirement income it will ultimately produce. Superannuation, introduced in 1992, links retirement outcomes to workforce participation, affecting low-skilled workers and people who take time out for caring responsibilities. Two-thirds of retirees still receive either a full or part age pension alongside their super.
The system is also becoming more concentrated. Deloitte expects a $12 trillion asset pool by 2045, controlled primarily by about 10 mega-funds. Regulators have identified risks including poor customer service, complaints handling problems and delays of two years in insurance payments linked to super accounts. APRA figures show the 10 largest funds with available data spent a combined $388 million on marketing in FY25, compared with $45 million on member complaints and feedback.
Regulators have also raised concerns about valuations for unlisted investments and growing exposure to private credit. Members often select from pre-mixed investment options without detailed knowledge of the assets involved. Low-cost index-tracking funds charging annual management fees as low as 0.03 per cent have raised questions about the value of fees closer to 0.5 to 1 per cent on many default options. Super Consumers Australia’s Xavier O’Halloran said changing investment settings to time markets can leave people worse off. The government’s Moneysmart retirement income calculator and Centrelink’s Financial Information Service can help people assess retirement income and pension entitlements.
