Retirement
‘Stunning result’ for super despite COVID-19 battering
Australia’s superannuation savings pool is coping well despite the pandemic’s impact on market volatility, it has been revealed.
‘Stunning result’ for super despite COVID-19 battering
Australia’s superannuation savings pool is coping well despite the pandemic’s impact on market volatility, it has been revealed.
The Australian Prudential Regulation Authority (APRA) has highlighted that just 0.3 per cent of the value of Australian superannuation has been lost in the 12 months to 30 April 2020.
In the latest quarterly industry snapshot, APRA was able to show that while the savings pool did contract 7.7 per cent between December 2019 and March 2020, over the 12-month period to the end of April 2020, it saw an overall decrease of just 0.3 per cent.
This has been credited to 2019 being one of the best years ever for superannuation savings in Australia.
According to Rainmaker Information, which analysed the data, it should give Australians 12 million super fund members and their families confidence that while superannuation has been buffeted by COVID-19, their super savings remain safe.
Alex Dunnin, the executive director of research and compliance at Rainmaker Information, has called it a “stunning result”.
It means Australia’s superannuation fund savings remain at the level they reached in March 2019, which contrasts strongly with the fallout from the GFC, where super funds saw savings drop by around 20 per cent.
But according to Rainmaker, not all parts of the superannuation sector are weathering the crisis equally.
A contraction of just 5 per cent was seen across the not for profit (NFP) super fund segment comprising corporate, public sector and industry super funds in the March quarter.
The retail super fund sector loss was more than twice as much, at up to 12 per cent, while self-managed super funds (SMSFs) contracted 9 per cent.
Mr Dunnin flagged that “two-thirds of the decrease experienced across the superannuation savings pool came from APRA-regulated NFP and retail funds”.
“APRA figures show the retail super fund segment holds 24 per cent of their investments in Australian equities, compared to just 15 per cent by NFP funds,” he explained.
As a result, retail funds are more vulnerable to fluctuations in equities markets. However, Mr Dunnin did concede that industry super funds with a larger share of their investments in unlisted assets such as real property, infrastructure and private equity were better insulated from the worst of the equities falls.
RELATED ARTICLES
About the author
About the author
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
Superannuation
Small businesses brace for cash flow challenges as Payday Super becomes law
With the new Payday Super legislation now enacted, small businesses across Australia are preparing for a significant shift in how they manage superannuation contributions. The law, which mandates a ...Read more
Superannuation
Rest launches Innovate RAP to support fairer super outcomes for First Nations members
In a significant move towards reconciliation and inclusivity, Rest, one of Australia's largest profit-to-member superannuation funds, has unveiled its Innovate Reconciliation Action Plan (RAP)Read more
Superannuation
Payday super legislation promises fairer retirement for part-time and casual workers
In a landmark development for the Australian workforce, the recently passed Payday Super legislation is set to transform the retirement landscape for countless part-time and casual workersRead more
Superannuation
Payday Super passes as Employment Hero, OZEDI and Zepto unite to help small businesses meet new seven-day payment rule
With the Payday Superannuation Bill officially passing through Parliament, Australian businesses are now less than eight months away from a major shift in how superannuation contributions are made — ...Read more
Superannuation
Aware Super appoints Simon Warner as Chief Investment Officer
Aware Super has announced the appointment of Simon Warner as Chief Investment Officer, effective 1 December 2025, following a competitive global search to replace outgoing CIO Damian Graham, who ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
Superannuation
Small businesses brace for cash flow challenges as Payday Super becomes law
With the new Payday Super legislation now enacted, small businesses across Australia are preparing for a significant shift in how they manage superannuation contributions. The law, which mandates a ...Read more
Superannuation
Rest launches Innovate RAP to support fairer super outcomes for First Nations members
In a significant move towards reconciliation and inclusivity, Rest, one of Australia's largest profit-to-member superannuation funds, has unveiled its Innovate Reconciliation Action Plan (RAP)Read more
Superannuation
Payday super legislation promises fairer retirement for part-time and casual workers
In a landmark development for the Australian workforce, the recently passed Payday Super legislation is set to transform the retirement landscape for countless part-time and casual workersRead more
Superannuation
Payday Super passes as Employment Hero, OZEDI and Zepto unite to help small businesses meet new seven-day payment rule
With the Payday Superannuation Bill officially passing through Parliament, Australian businesses are now less than eight months away from a major shift in how superannuation contributions are made — ...Read more
Superannuation
Aware Super appoints Simon Warner as Chief Investment Officer
Aware Super has announced the appointment of Simon Warner as Chief Investment Officer, effective 1 December 2025, following a competitive global search to replace outgoing CIO Damian Graham, who ...Read more
