Deloitte report predicts power of mega super funds

Mike Taylor

Managing Editor and Publisher

1 July 2026

At the same time as the Australian Prudential Regulation Authority’s (APRA’s) inaugural Systems Risk Stress Test identified the potential danger of the power held by a few large super funds, Deloitte appears to have given form to that concern.

A new Deloitte report, Dynamics of Australian Superannuation System, claims that the superannuation system has moved into a “mega-fund era”, with consolidation continuing to reshape the market.

The report estimates the number of mega-funds with assets under management exceeding $100 billion will grow from 10 to 12 within a few years. Meanwhile, corporate funds have largely disappeared, while the not-for-profit sector now controls more than half the system. Retail funds (including platforms) and SMSFs each account for about a quarter.

Deloitte Superannuation principal, Diane Somerville said the industry has consolidated rapidly, and the largest funds now dominate both assets and member flows.

“The top 25 superannuation entities now hold 97% of APRA-regulated assets, with the top 10 controlling 73%.”

“We expect that there will be further rationalisation, with the few remaining corporate funds eventually moving into aligned public offer industry funds or retail master trusts. While some smaller funds will remain, we anticipate they will offer specialist investments or a targeted or niche member proposition to differentiate themselves.”

The Deloitte report also confirms that industry funds are projected to strengthen their lead as the dominant segment of the superannuation sector, as other fund types stagnate or decline.

“Industry funds already account for around 46% of total assets in 2025 and are projected to expand their share to 55% by 2045. This growth is being driven by strong default inflows, lower average fees and ongoing fund consolidation. By contrast, the retail and SMSF segments are expected to lose relative share over time,” Deloitte’s analysis of the report said.

Deloitte has sought to look out 20 years to 2045 and has predicted that superannuation assets will triple within that period and “be dominated by a handful of mega-funds as consolidation, technological change and an ageing population intensive the challenge of turning larger balances into sustainable retirement income.

Deloitte’s Dynamics of Australian Superannuation System report predicts total net superannuation assets will increase from $4 trillion in 2025 to $12.4 trillion by 2045 with Deloitte Actuarial Consulting Partner, Andrew Boal saying the real test is whether the system can translate that growth into sustainable retirement income and improved outcomes for members.

“As balances rise, there is an urgent need for more sophisticated, fit-for-purpose retirement products that can balance income, flexibility and longevity protection for a much larger and more diverse retiree population,” he said.