APRA releases annual superannuation figures to 30 June 2012

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The Australian Prudential Regulation Authority (APRA) today released its Annual Superannuation Bulletin for the financial year to 30 June 2012. Total superannuation assets increased during the year by $49.6 billion, or 3.7 per cent, to $1.40 trillion.

During this period, industry funds’ assets increased by 6.6 per cent. Public sector funds’ assets increased by 5.7 per cent. Small funds’ assets, which include self-managed super funds (SMSFs), single-member approved deposit funds and small APRA funds, increased by 3.7 per cent and retail funds’ assets by 0.9 per cent. Corporate funds’ assets decreased by 4.1 per cent.

In the year to 30 June 2012, the industry-wide rate of return (ROR) for large funds (more than four members) was 0.5 per cent. Public sector funds recorded an ROR of 1.7 per cent, corporate funds 1.0 per cent, industry funds 0.9 per cent and retail funds –0.6 per cent.

In the 10 years to 30 June 2012, the industry-wide ROR for large funds was 4.4 per cent per annum. Public sector funds recorded an ROR of 5.5 per cent per annum, industry funds 5.1 per cent per annum, corporate funds 4.8 per cent per annum and retail funds 3.4 per cent per annum.

For the year to 30 June 2012, contributions to all superannuation entities totalled $117.5 billion, with employers contributing $82.1 billion and members contributing $34.2 billion. Contributions to large funds totalled $90.9 billion, of which public sector funds received 34.7 per cent ($31.5 billion), retail funds 31.0 per cent ($28.2 billion), industry funds 30.2 per cent ($27.5 billion) and corporate funds 4.1 per cent ($3.7 billion).

For large funds, total accumulation retirement benefits are estimated to be 82.7 per cent of total assets, or $759.0 billion, at 30 June 2012, with 17.3 per cent or $158.5 billion in defined benefits.

The Bulletin also includes features on competition in the superannuation industry and on pension payments. The first feature, ‘Considering statistics to measure industry competition’, examines industry consolidation over the 12 years to 30 June 2012, the concentration of the industry and member behaviour. The analysis found that further consolidation in the industry would be unlikely to create market structures harmful to competition.

The second feature, ‘Superannuation pension payments’, examines trends in pension payments over the eight years to 30 June 2012. The analysis found that there are more pension members in 2012 than ever before. Retirement-age members, on aggregate, withdrew proportionately less of their vested benefits as lump sums and more as pension payments in 2012 than in 2005.

The Annual Superannuation Bulletin is available to read.