The long-term outlook for the superannuation sector remains positive, according to Dexx&R’s latest market projection report.
The total superannuation market sector is projected to increase by an average annual growth rate of 8.03 per cent to $2,439 billion by June 2018.
The projections also indicated that the total financial services market is projected to grow at an average annual growth rate of 7.66 per cent per annum through to June 2018.
However, the short-term growth in each of the key investment markets will be affected by the current downturn in equities and property, according to Dexx&R managing director Mark Kachor.
“The decline in asset values will, however, be offset by the continued inflow of contributions in the superannuation market segments driven by SG (superannuation guarantee) contributions,” he said.
“It is expected that discretionary contributions will decline in the short term, however these are expected to rebound once equity markets stabilise.”
The employer superannuation sector, industry superannuation funds and personal superannuation will experience the strongest growth over the 10-year period to June 2018, according to the projections.
The employer superannuation sector is projected to increase by $167 billion, the industry fund sector by $327 billion and the personal superannuation sector by $184 billion.
