December super news

5 min read
5 min read

Superannuation assets projected to almost triple in 2041

According to the tenth edition of Deloitte’s Dynamics of the Australian Superannuation System, Australia’s superannuation landscape will experience continuing growth, consolidation and rationalisation alongside ongoing economic and regulatory change over the next 20 years.

The report looks at market dynamics, demographic shifts, longevity and retirement incomes, as well as possible asset allocation impacts on the Australian share market, and finds:

  • total superannuation assets projected to almost triple, to over $9 trillion in 2041, from $3.4 trillion today
  • changes in market share of different sectors, affected by account and fund consolidation and the impacts of stapling (accounts that follow individuals as they change jobs)
  • transformation of the post-retirement segment as funds implement their Retirement Income Covenant strategy from mid-2022
  • total fund investment in Australian equities projected to increase from 34 per cent of total ASX market capitalisation today to 42 per cent by 2041.

Deloitte Consulting partner, Andrew Boal said, “While COVID-19 has caused volatility in investment markets over the last two years, and with inflation and cash rates at all-time lows, the Australian superannuation industry has continued to grow, driven by both contribution inflows exceeding benefit outflows and robust investment returns.”

“Funds that fail to reach scale or underperform relative to their peers will struggle to survive unless they can transform their businesses, and quickly, and we expect to end up with a modest number of very large funds that will increase their foreign investments due to their size and the relative size of global opportunities compared to the small Australian market. They will also increase investment in privately-held assets,” said Deloitte National Superannuation Lead, Russell Mason.

MetLife declared inclusive by Diversity Council Australia

MetLife Australia has been listed as an inclusive workplace on Diversity Council Australia’s (DCA) Inclusion@Work Index 2021.

Participating for the first time in 2021, MetLife is the only life insurance company to be listed in the Index this year, reflecting the work the organisation has undertaken to increase diversity and ensure an inclusive experience for all employees.

Run bi-annually, the DCA’s Inclusion@Work Index enables organisations to track the state of diversity and inclusion of their workforce and be benchmarked against leading Australian employers.

Commenting on the announcement, Richard Nunn, MetLife Australia CEO, said:

“This recognition by DCA is testament to our commitment to diversity, equity and inclusion at MetLife. We’re thrilled to be listed among some of Australia’s leading and most progressive workplaces. This recognition validates the real and meaningful steps we’ve taken to enable our people to bring their whole selves to work and really thrive. We know there is more to be done and we’ll use the insights from the Inclusion@Work Index to continue to build MetLife into a leading workplace and life insurer.”

The double-edged sword of super switching

Iress has partnered with Griffith University to release new research, which highlights the double-edged sword of the ease with which superannuation members can make changes to their investment options. According to the research, there was a near tripling of members switching investment options within their superannuation during the COVID-19 induced market downturn, often resulting in poor choices which can create a knock-on effect to financial wellbeing and retirement savings.

The research, which analysed over 42,000 superannuation switch decisions from 1 January 2019 to 31 March 2021, identified a 50 per cent increase in poor superannuation switching decisions as the pandemic progressed, with ‘bad’ switches defined as having a negative impact on superannuation balances compared to doing nothing.

The research explores these behaviours and highlights three key opportunities for superannuation funds as:

    1. improving access to quality financial education
    2. harnessing technology to positively intervene in member decisions
    3. supporting better access to quality financial advice.

Griffith Business School’s senior lecturer, Dr Kirsten MacDonald, said: “While better superannuation switching access and financial control is a good thing, that very access could also be putting the retirement needs of those with lower levels of financial literacy and without access to advice at risk.”

Alternative fund managers transforming their approach to ESG, talent and new products

According to the results of EY’s 2021 Global Alternative Funds survey, Can the difference of one year move you years ahead? , the global alternative funds industry has managed to navigate pandemic-related disruption and uncertainties, with firms now considering ways to pivot towards proactive transformation and address emerging trends shaping the future of the sector.

The survey found funds have been transforming their strategies and products to fit the changing profile and needs of investors and, as a result, investors’ perceptions of the value of alternative investments have risen.

ESG is an increasing area of focus, with alternative fund investors increasingly factoring ESG considerations into their investment decisions and 75 per cent saying their scrutiny of managers’ ESG policies has increased in the past two to three years.

Alternative fund managers in Asia-Pacific however seem to have more work to do in this space than counterparts in the rest of the world, with just 48 per cent saying they have implemented ESG capabilities, compared with 78 per cent who said the same in Europe, and 59 per cent in North America.

During 2021, digital assets also became an area of focus and, while current exposures to cryptocurrency among most managers remain small, one in four managers expect their exposures in this space to increase in the coming year.

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Carmen Beverley-Smith

Executive Director - Superannuation, Life & Private Health Insurance, APRA

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Carmen joined APRA in March 2023 and holds the role of Executive Director, Life and Private Health Insurance and Superannuation.  

She has had an esteemed career in financial services, spanning over 25 years. She has held diverse leadership roles at Westpac and Commonwealth Bank of Australia, including across risk, transformation and change, product and portfolio development, and sales and service. 

Prior to joining APRA, she held the role of General Manager, Risk Transformation Delivery Integration at Westpac. This involved leading the group-wide implementation of a suite of solutions to uplift risk management capability and develop data, analytics and reporting. 

Carmen leads with a values-driven approach and a particular interest in developing and mentoring talent. 

She holds a Bachelor of Commerce and Accounting, is a certified Chartered Accountant and a Graduate of the Australian Institute of Company Directors. 

Amy C. Edmondson

Novartis Professor of Leadership and Management, Harvard Business School

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Amy C. Edmondson is the Novartis Professor of Leadership and Management at the Harvard Business School, a chair established to support the study of human interactions that lead to the creation of successful enterprises that contribute to the betterment of society.

Edmondson has been recognized by the biannual Thinkers50 global ranking of management thinkers since 2011, and most recently was ranked #1 in 2021 and 2023; she also received that organization’s Breakthrough Idea Award in 2019, and Talent Award in 2017.  She studies teaming, psychological safety, and organisational learning, and her articles have been published in numerous academic and management outlets, including Administrative Science Quarterly, Academy of Management Journal, Harvard Business Review and California Management Review. Her 2019 book, The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation and Growth (Wiley), has been translated into 15 languages. Her prior books – Teaming: How organizations learn, innovate and compete in the knowledge economy (Jossey-Bass, 2012), Teaming to Innovate (Jossey-Bass, 2013) and Extreme Teaming (Emerald, 2017) – explore teamwork in dynamic organisational environments. In Building the future: Big teaming for audacious innovation (Berrett-Koehler, 2016), she examines the challenges and opportunities of teaming across industries to build smart cities. 

Edmondson’s latest book, Right Kind of Wrong (Atria), builds on her prior work on psychological safety and teaming to provide a framework for thinking about, discussing, and practicing the science of failing well. First published in the US and the UK in September, 2023, the book is due to be translated into 24 additional languages, and was selected for the Financial Times and Schroders Best Business Book of the Year award.

Before her academic career, she was Director of Research at Pecos River Learning Centers, where she worked on transformational change in large companies. In the early 1980s, she worked as Chief Engineer for architect/inventor Buckminster Fuller, and her book A Fuller Explanation: The Synergetic Geometry of R. Buckminster Fuller (Birkauser Boston, 1987) clarifies Fuller’s mathematical contributions for a non-technical audience. Edmondson received her PhD in organisational behavior, AM in psychology, and AB in engineering and design from Harvard University.

 

Daniel Mulino MP

Assistant Treasurer and Minister for Financial Services

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Born in Brindisi, Italy, Daniel was a young child when he moved with his family to Australia. He grew up in Canberra and completed his first degrees – arts and law – at the ANU. He then completed a Master of Economics (University of Sydney) and a PhD in economics from Yale.

He lectured at Monash University, was an economic adviser in the Gillard government and was a Victorian MP from 2014 to 2018. As Parliamentary Secretary to the Treasurer of Victoria, Daniel helped deliver major infrastructure projects and developed innovative financing structures for community projects.

In 2018 he was preselected for the new federal seat of Fraser and became its first MP at the 2019 election, re-elected in 2022 and 2025. From 2022 to 2025, Daniel was chair of the House of Representatives’ Standing Economics Committee in which he chaired inquiries; economic dynamism, competition and business formation and insurers’ responses to 2022 major floods claims.

In 2025, he became the Assistant Treasurer and Minister for Financial Services.

In August 2022, Daniel published ‘Safety Net: The Future of Welfare in Australia’, which aims to explore the ways in which an insurance approach can improve the effectiveness of government service delivery.