Major superannuation funds administrator, Link Market Services is predicting more fund mergers but a potential slowing in superannuation fund growth in the wake of the COVID-19 pandemic.
In a presentation delivered to a Macquarie Australia investor conference, Link pointed to the increased pressure and activity placed on administrators as a result of COVID-19, not least the Government’s hardship superannuation early release.
It said that call volumes within its member contact centres had been driven by investment switching, advice and super early release but that a decrease in fund members was anticipated from early access withdrawals.
Looking over the horizon, the Link predicted increased fund merger activity and increased new business opportunities driven by “increasingly complex regulatory and operating environment”.
However, it cautioned that industry growth of new accounts might slow through early access, lower employment growth and lower workforce mobility.