In this article, we look at the key findings from Right Lane’s recent paper on gender and superannuation.Read More
2022 has been a year when the economic impacts of superannuation have played out in national politics in very prominent, and different, ways.Read More
By forcing Australia’s big superannuation funds to compete harder for members, could the Coalition’s Your Future, Your Super reforms ultimately make the sector less competitive? That’s the question posed by Melbourne group Right Lane Consulting.Read More
The government’s super reforms are designed to expose more super funds to competition. But by doing so, could we end up with a system dominated by a handful of giant funds? MEDIA RELEASERead More
The changes announced in the recent Budget, aimed at improving efficiency in the super system, are in essence picking the ‘winners’ and the ‘losers’ in the system. The stapling of accounts and spotlight on fees and performance is likely to escalate switching behaviour while reducing the prominence of the default distribution market, which may shrink to less than 220,000 accounts annually. The battle ground for member acquisition will shift to ‘direct to consumer’ distribution, a market which is estimated to be approximately 1 million accounts annually, currently dominated by a handful of large funds.Read More
Majority of Australia’s super funds are likely to tip into negative cashflows. MEDIA RELEASE.Read More
MEDIA RELEASE: Australia’s superannuation system needs further consolidation to survive and thrive in the post-COVID-19 world
Australia’s superannuation system needs further consolidation to survive and thrive in the post-COVID-19 world. MEDIA RELEASE.Read More
Account consolidation and legislative changes are placing pressure on funds’ fee models, putting their business models at risk.
At a system level, funds are experiencing an increasing gap between total expenses and total fees due to a decline in total member accounts. In the past five years, total expenses grew by 6% CAGR, while the total number of member accounts declined by 2% CAGR, total revenues declined by 1% CAGR. This issue is likely to be exacerbated by a fundamentally more expensive business model required to meet members, regulators and other stakeholders’ expectations and to compete with more aggressive rivals.