Strong rise in contributions fails to stem super asset decline

Market performance has led the balance of superannuation assets to decline by 3.2% despite seeing contributions of $150 billion.

According to quarterly data from the Australian Prudential Regulation Authority (APRA) in the 12 months to 30 September, 2022, the total super balance declined from $3.43 trillion to $3.32 trillion.

This compared to a decline of 0.5% in the 12 months to 30 June.

The decline in MySuper assets was larger at 3.8%, declining from $922 billion to $887 billion, while those in self-managed super funds (SMSF) declined by 2.8% from $890 billion to $865 billion.

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APRA said: “This was predominantly driven by rising global interest rates, pressures from disrupted supply chains and downward revision of global growth outlook”.

Contributions increased by 12% from $134 billion to $150 billion thanks to growth in employer and personal member contributions and strong labour force figures.

The increase in the Superannuation Guarantee from 10% to 10.5% in July saw employer contributions increase 10.4% to $111 billion.

Personal member contributions increased by 17% to $36.6 billion.

Pension payments totalled $40.5 billion over the year, an increase of 2.9%, which APRA said was in-line with long term trends.