Fast facts about super
Did you know that Australia is the fourth largest holder of pension fund assets in the world? It’s a staggering achievement, given that the idea of universal super for the whole workforce only began in 1983. Here are some fascinating facts about the current state of play.
- SMSF assets increased to $674.7 billion in the first quarter of 2017, with overall superannuation assets growing to $2.2 trillion year-on-year.
- New quarterly statistics released by APRA reveal a 12.8 per cent increase in SMSFs from March 2016 to March 2017, while total superannuation assets saw an 11.8 per cent rise.
- There were $26.9 billion of contributions in the March 2017 quarter, up 12.3 per cent from $24 billion in March 2016, with total contributions year-on-year showing a 2.6 per cent increase to $106.7 billion.
- Total benefit payments saw a 21.3 per cent increase to $18.8 billion, with total benefit payments for the year ending March 2017 at $70.4 billion.
- Net contribution flows, consisting of contributions and net benefit transfers less benefit payments, dipped to $31.6 billion in the March 2017 quarter, down by 12.7 per cent on the March 2016 quarter of $36.2 billion.
- Over the March 2017 quarter, entities with more than four members saw total assets increase by 2.4 per cent to $1.5 trillion. Of this amount:
- 50.2 per cent was invested in equities – with 23.6 per cent in Australian listed equities, 22.6 per cent in international listed equities and 4.1 per cent in unlisted equities.
- 20.6 per cent was invested in fixed income and 12.1 per cent in cash.
- 13.3 per cent was invested in property and infrastructure.
- 3.8 per cent was invested in other assets, including hedge funds and commodities.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
