KPMG’s Super Insights 2024 report and dashboard analyse the Australian superannuation market and provide customisable data points to give you a clear picture of performance at an industry, segment and fund level and key focus areas for the next 12 months.
After a challenging 2022, Australian superannuation funds rebounded in 2023, experiencing strong inflows and investment performance leading to 7.6% growth across the industry. Total Australian super assets under management now sit at more than $3.5 trillion.
But is the superannuation industry really super?
Key drivers of member outcomes
Investment performance
In FY23, Australian super funds returned an average of 8.62% to members, up from -3% in FY22. Despite the constantly changing investment landscape, super funds need to continue delivering strong returns to members. As the superannuation industry grows, more will be invested offshore, so funds will need to consider their operating models to support investment activities.
Competitive fee arrangements
Amid strong competition between super funds to attract and retain members, average fees continue to decline. Although this trend is likely to continue, super fund trustees need to ensure their fee arrangements do not restrict key transformation projects and innovation that support members’ best financial interests.
Sustainability of super funds
Superannuation funds need sustainable business models to attract and retain members, respond to regulatory reforms and support members in retirement. Super funds continue to engage members through digital experiences and advertising, but risk significant outflows if members don’t have access to suitable retirement products and affordable financial advice.
Australian superannuation industry performance snapshot
The superannuation industry rebounded in 2023
With global financial market growth, Australian superannuation funds posted strong investment returns. Average returns were 8.62% for the year, and nine funds recorded double digit returns. This led to a 7.6% increase in total superannuation assets under management, including SMSFs.
Average super balances increased
Strong investment returns and the higher Superannuation Guarantee led to an increase in the average account balance from $90,783 to $97,154. Most of the top 10 funds by account balance were retail and corporate super funds.
Net inflows continue to be concentrated in 24 funds
Several funds that had negative net inflows in FY22 stabilised during FY23. Overall, 20 funds experienced net outflows during FY23, with some achieving cashflow stabilisation and slower outflows.
Some industry funds experienced sustained growth
Some industry super funds had strong inflows, supported by stapling and the increased Superannuation Guarantee. Industry funds gained 1% in market share to total 38% of the superannuation market, whereas the market share of SMSFs decreased by 2% to total 29%.
Mega funds maintained momentum
In FY23, there were seven mega funds with no new entrants. Despite only a marginal decrease in market share, mega funds continued to grow in assets under management and membership due to investment performance, new direct members, corporate super transitions and the Superannuation Guarantee increase.
Platform players continue to scale
Platform super funds (particularly platform providers with adviser relationships) have seen strong cash flows, growth in assets under management and members and continue to gain traction with advisers, due to investment optionality and platform features.
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Superannuation data and analytics services
| KPMG can provide customised analyses of Super Insights 2024, including comparing the performance of your super fund against others, projecting future performance data and modelling the impacts of potential super fund mergers. |
