Superannuation to grow faster than personal investments

The superannuation market is expected to grow faster than the personal investment market over the next 15 years, according to a report released by Rice Warner.

Rice Warner's Personal Investments Market Projections Report 2012 revealed that the personal investments market, which includes assets held in banks, shares and investment properties, sat at $1.9 trillion at 30 June 2012, compared with $1.3 trillion currently sitting in superannuation.

However, the superannuation market will grow faster than personal investments over the next 15 years - 6.3 per cent per annum compared to 4.2 per cent per annum - mostly due to the significant compulsory component within that market driven by the superannuation guarantee.

Despite the projected growth of the superannuation market, Rice Warner director Richard Weatherhead said personal investments would become increasingly important, with the wrap platform market to double in the next 15 years.

He claimed that concessional contribution caps and other tax changes dampened the attractiveness of investing in superannuation. Furthermore, investors will seek the flexibility of access to their savings.