Monetary tightening erodes super assets

Mike Taylor

Managing Editor/Publisher, Financial Newswire

1 March 2023

Australia’s total superannuation assets have decreased as a result of a combination of market volatility and the aggressive monetary policy being pursued by central banks.

The latest data released by the Australian Prudential Regulation Authority (APRA) to the end of December showed that superannuation assets in Australia totalled $3.4 trillion – a 3% decrease in value when compared to last year.

The decrease was recorded despite an 11% increase in contributions to $154.4 billion including an 11.8% increase in employer contributions – something attributable to the increase in the superannuation guarantee to 10.5%.

The APRA analysis said benefit payments totalled $91.6 billion, increasing 11.3% over the year. Of this, lump sum payments totalled $50.2 billion, an increase of 17.6% over the year, and pension payments totalled $41.3 billion over the year, an increase of 4.5%.

It said both increases were in-line with longer term trends due to a maturing superannuation system and ageing population.