The report, conducted by Rice Warner, forecast that savings and infrastructure development will boom as superannuation assets soar to $5 trillion over the next 30 years, and dispelling the perception that retirees are a drain on the economy.
Actuaries Institute chief executive, David Bell, said the report suggested that superannuants’ risk aversion and preference for capital security would see a move to conservative investment options including government and corporate bonds by 2040.
“This is a huge opportunity for the Government to provide investment vehicles that can drive infrastructure development over the next three decades,” he said.
“Recent sales of ports and freeway infrastructure have demonstrated the superannuation market’s capacity and appetite for these investment classes.
“The good news for the nation is that retirees’ retirement assets will help reduce their reliance on the Age Pension and at the same time underpin much needed infrastructure development.”
The report said that the proportion of superannuation assets held in pension phase by those that have retired will rise from 30 per cent to 44 per cent within 30 years as baby boomers retire.
The report predicted a decline in market share of the self-managed superannuation fund (SMSF) segment from 31 per cent of assets to 25 per cent over 30 years largely due to higher growth in the other segments.