Australia is expected to become the world’s second largest pension market after the US within six years, which will allow superannuation managers to have stronger global clout, according to the Super Members Council.
Figures from the council, an industry group for superannuation funds in Australia, show that in 2023, Australia was the world’s fourth largest pension market with US$2.2 trillion of assets.
The US topped the list with $38.9 trillion, while runners-up Canada and the UK trailed far behind with $3.17 trillion and $2.7 trillion, respectively.
Australian pension assets are expected to surpass the UK in 2030 and Canada by 2031, the Super Members Council says in a statement on February 25.
“The sector’s rising global investment capability also gives Australia stronger global clout, as a delegation of super leaders head to the US to search for new investment deals for members while strengthening ties,” according to the group.
Misha Schubert, the council’s chief executive officer, says Australia’s superannuation system is the fastest growing in the world, expanding twice as fast as its global peers.
She describes superannuation as a “great Australian success story” that “gives millions of everyday Australians the chance to live the life they want in retirement, while saving the budget money over the long term”.
“It’s a win-win,” she says.