Super Industry 2025 Growth and Consolidation Analysis

This technical report analyzes the superannuation industry in Australia, focusing on trends, growth, and consolidation as it approaches 2025. It outlines the significant merger activity observed in 2023-2024, highlighting the emergence of mega-funds with over $100 billion in assets. The report details the reduction in the number of smaller funds and the increasing control of superannuation assets by larger funds, which now hold 80% of total assets. It discusses the implications of organic growth versus merger-driven growth, noting that while mergers can facilitate growth, the sustainability of this growth relies on organic factors. The report also examines the expected rankings of superannuation funds over the next five years, projecting shifts in positions based on anticipated organic growth and the impact of mergers. Additionally, it addresses governance challenges faced by funds as regulatory scrutiny intensifies, particularly concerning operational risks and member outcomes, which are expected to shape the industry's future.