Super helps financial services become dominant sector

Superannuation has been confirmed as one of the key drivers making financial services the fastest-growing industry in Australia over the past two decades.

The status of the financial services and the role played by superannuation has been revealed in the latest Financial Services Council (FSC) UBS State of the Industry report released today.

According to the report, in the 12 months to 30 September 2015, the financial services industry added $141 billion to the economy or $5,881 for every Australian, with the industry exceeding the value of all mining activities by $532 million.

Commenting on the report, FSC chief executive, Sally Loane said it served to confirm the significant contribution being made by financial services to Australia's economic and employment growth.

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UBS Asset Management Australian head, Bryce Doherty said the report highlighted a potential opportunity for innovative financial services firms to increase exports of financial services, which are currently only 3.5 per cent of the $2.6 trillion in funds under management.

However, he said it was also clear the industry needed to play an important role at home in providing clarity and simplicity for all Australians' futures."

"Australia has world class fund managers who understand the need for the industry to continue to develop innovative, flexible, and transparent products that help Australians fulfil their current and future financial needs," he said.

However, in doing so, Doherty pointed to the issue of Australia's ageing population saying that it was alarming that recent surveys had indicated that over half of non-retired Australians considered it unlikely they would have enough money for a secure and dignified retirement.

"It is essential that the finance industry works with government to provide clarity and incentives for Australians to ensure the number of future retirees requiring tax payer support is reduced to a minimum," he said.