POWERED BY MOMENTUM MEDIA
Employers push super contribution growth
Superannuation contributions for Australian Prudential Regulation Authority (APRA) regulated funds have hit their highest growth levels since the global financial crisis, according to the Financial Services Council's (FSC's) bond report.
High levels of employment propelled 7.3 per cent growth in total contributions to $85.9 billion in the 2011-12 financial year, compared to $80.1 billion in the 2010-11 financial year.
But the growth came from compulsory contributions and not discretionary contributions which decreased by $0.2 billion over the same period.
FSC chief economist James Bond said good employment numbers were at the source of increased contributions, while investor confidence was having an ill effect on discretionary contributions.
"Discretionary flows continue to disappoint reflecting a lack of consumer and investor confidence. Although discretionary flows represent only around 20 per cent of total flows, strong voluntary flows are necessary if Australians are to have enough money saved for their retirement," Bond said.
The Bond Report relies on the Australian Prudential Regulation Authority's quarterly data on APRA-regulated super fund contributions.
APRA reported total contributions of $90 billion, however, the FSC removed a one-off $4.6 billion superannuation liability contribution by the NSW Government in the June quarter as it almost doubled contributions to public sector funds in the second quarter.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
The Federal Court has ordered AustralianSuper to pay $27 million for failures to address multiple member accounts.
The country’s fourth-largest fund is targeting the “missing middle” of members with a new digital advice service in partnership with Ignition Advice.
The prudential regulator confirmed it is considering BUSSQ’s Federal Court appeal.
The Albanese government has put forward a bold proposal to tackle the challenges of Australia’s swelling retirement pool, in an effort to allow superannuation funds to play a more active role in shaping members’ retirement outcomes.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.78 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
30.80 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
28.31 3 y p.a(%)
