Despite ongoing regulatory focus, legislative changes and media attention, Australia’s superannuation system continues to deliver strong outcomes for members. With assets totaling close to $2.5 trillion, it continues to mature into one of the most highly regarded retirement systems globally. That said, the industry faces a number of challenges, which for some will create significant opportunities, and for others will present material difficulties and test their sustainability.
The 2018 KPMG Super Insights Report & Dashboard analyses the current state of the super industry and considers the challenges it will face in the coming years.
The KPMG Super Insights Dashboard presents leading analytics applied to 10 years of APRA and ATO-published-statistics. The interactive dashboard can be filtered to view industry and fund metrics for a particular year or segment of the market and to view metrics for an individual fund in comparison to a peer group.
Key challenges and opportunites
In the report we discuss a number of areas within which KPMG sees opportunities for funds to differentiate their offerings in order to deliver stronger outcomes for members, and succeed in this highly competitive market.
- Ongoing regulatory change – the Productivity Commission review into efficiency, the Royal Commission into poor financial practices, and a raft of regulatory amendments and recent announcements on changes to franking credits and early release of super.
- Scale and member outcomes – the new ‘member outcomes’ legislation is likely to have a significant impact on the ongoing viability of funds, particularly those that do not provide strong outcomes for members.
- Insurance – the ISWG’s proposed code is likely to be implemented by most funds, requiring many to re-configure their insurance designs.
- Member engagement – the broader use of data analytics and segmentation models is becoming more prevalent across progressive funds.
- Technology and data – continues to be critical to the delivery of a superannuation fund’s outcomes. The integration of underlying platforms to deliver a wide range of data points continues to be a challenge.
- Digital innovation – innovative solutions to drive greater efficiencies and to tailor the experiences of super fund members could create challenges for smaller funds lacking the ability to invest in these technologies.
- Responsible investing – there is greater investor push for ethical investments, with many funds utilising broad screening of their investment universe to select appropriate assets.
- Governance and trust – with continuing reputational issues and the Royal Commission bearing down on perceived poor practices, financial services (including superannuation) continues to struggle with building trust.
Download the full report (PDF 752KB)
Explore the interactive dashboard
Read the media release