Australia has the highest superannuation assets growth rate of the world’s 13 largest pension markets, with a rate of 14% per annum over the ten year period between 2003 and 2013.
According to the latest Towers Watson Global Pension Assets Study, Australia’s superannuation market is valued at US$1.6 trillion – making it the world’s fourth largest, after the US, UK and Japan. Relative to GDP, Australia ranks number five on the world stage, with a rate of 105%.
“The latest numbers in our Global Pension Assets Study illustrate the size and long-term growth of our Australian super system, which results from high levels of contributions (inflows) relative to pensions and other benefit payments (outflows) and relatively high growth-orientated investment strategies that have weathered the storm of the GFC,” Australia’s senior investment consultant for Towers Watson, Martin Goss said.
The combined total pension fund assets for the world’s 13 largest markets grew by 9.5% during 2013 to reach record highs of almost US$32 trillion. Goss says this is evidence of global economic recovery gaining momentum during 2013.
“During 2013 equities enjoyed their best calendar year of risk-adjusted return since the financial crisis and as a result pension funds in most markets are in the best shape they have been for many years,” Goss said.
“After such a long period of financial retrenchment and uncertainty, this is all genuinely encouraging.”
After a fall of 22% in 2008, global pension assets have been growing in value since 2009.
Since 2003, the average annual growth rate has been 6.7% globally.