By 2026, the Australian superannuation industry will look very different with total funds under management forecast to rise from $1.3 trillion to $3.3 trillion.
There will also be account consolidation as government policy drives change and individuals make rational decisions to combine their super holdings into single funds, especially as they near retirement. This will remove revenue from the system as fees fall in line with the number of accounts. These forces of change will create a number of challenges for super funds that will need to be addressed to ensure their continued growth.
The funds that address these issues will emerge as the “mega-funds” that lead tomorrow’s industry. However, they will need to move quickly and make use of technology to realise their ambitions.