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Super confidence reflected in contribution hike
Super fund members have displayed increasing confidence in the nation's superannuation system, increasing voluntary superannuation contributions by the largest hike since September 2007 during the March quarter, according to the Financial Services Council's (FSC's) Bond Report.
The FSC said discretionary contributions were $3.8 billion for the March quarter, $690 million (22 per cent) higher than in March 2012.
The increase was attributed to positive equity market performance and news about the returns super funds are posting.
However, employer contributions decreased by 0.2 per cent or $40 million — the second time in the last three quarters, according to FSC chief economist James Bond.
Total contributions increased 3.3 per cent ($650 million) from the March quarter in 2012 to $20.6 billion; however that figure is 4.3 per cent ($930 million) below data from December 2012.
Although growth in contributions was moderate, the FSC said, Australian Prudential Regulated Authority (APRA)-regulated funds reached $1 trillion during the quarter.
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