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Superannuation assets lagging behind personal investments

Superannuation assets lagging behind personal investments

Graph comparison
Jack Derwin
11 August 2016

The latest research from Rice Warner shows Australia’s personal investments market sat at $2242 billion, while its superannuation market lagged behind at $2032 billion.

In its recently-published report titled Personal Investments Market Projections 2015, the firm said it expects the personal investments market to reach $4 trillion by 2030.

At the end of financial year, Australia’s personal investments market sat at $2,242 billion, while its superannuation market lagged behind at $2,023 billion.

Investment property and cash and term deposits make up the lion share of the personal investment market, totalling 42.6 and 42.2 per cent respectively.

Shares are expected to grow from 13.3 to 21.7 per cent by 2030, with Rice Warner counting on the search for higher yields to drive investors from cash and term deposits.

International equities are projected to grow as their accessibility and affordability make them attractive to investors looking to diversify.

The report also flagged huge investor movement as Australians begin to move away from direct holdings.

“The vast majority of (non-superannuation) personal investments are currently held directly by individuals with just 3.2 per cent held through investment products and platforms,” it said.

However, the study said Australians will increasingly embrace platform-held investments due to improving accessibility and cost reduction.

“The value of personal investments held on platforms is projected to rise from $71 billion in June 2015 to $315 billion over 15 years in today’s dollars, up by more than four times.”

Superannuation assets lagging behind personal investments
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