Sustralian Superannuation Assets To Reach $3 Trillion By 2020

MEDIA STATEMENT

Australian Superannuation Assets to Reach $3 Trillion by 2020

Despite the effects of the Global Financial Crisis, at a combined annual growth rate of 4.7%, the global retirement market is expected to grow by 66% by 2020 with total assets increasing from $35 trillion in 2009 to nearly $58 trillion.

According to the August 2010 Allianz Demographic Pulse report, Australia's retirement assets are estimated to increase from $1,232 billion in 2009 to $2,919 billion in 2020.

According to the Allianz report, Australia's share of world retirement assets in 2009 was 3.5%, which exceeded the shares of Japan (3.2%), Northern Europe (3.1%), Southern Europe (3.0%), emerging Asia (1.8%), and Central and Eastern Europe (0.4%). The largest shares of world retirement assets are accounted for by the US (50.5%), Western Europe (20.1%) and the UK (11.5%).

Commenting on the report, Allianz Australia Managing Director, Terry Towell, said "the Global Financial Crisis had a substantial impact on the retirement assets in most countries, for example, Australia's pool of retirement assets fell 11% between 2007 and 2008, and it will take the US until 2013 for its retirement assets to catch up to their 2007 high of more than $21 trillion.

"However, the most important question is what the long-term effects of the GFC will be on retirement asset pools. Allianz's report suggests that Australia's retirement assets will grow at a solid 8% per annum over the next decade."

The growth of Australia's retirement assets is estimated to outstrip those of all but one other developed country Greece, which is coming off a very low base over the period 2009 to 2020 see Table 1.

Table 1: Growth in Retirement Assets 2009-2010

Country CAGR*
Greece 9.7%
Australia 8.0%
Austria 7.1%
Portugal 7.1%
Sweden 7.1%
Finland 6.7%
Ireland 6.7%
Spain 6.6%
Italy 6.5%
Norway 5.8%
Belgium 5.4%
France 5.3%
Denmark 4.5%
Netherlands 4.5%
United Kingdom 3.8%
Germany 3.8%
United States 3.6%
Switzerland 3.5%
Japan 2.0%

* Compound Annual Growth Rate

Source: Allianz Demographic Pulse, No.3 2010 (August)



Media enquiries or for a copy of the Allianz Demographic Pulse Report

Nicholas Scofield
Allianz Australia
Ph. 02-9390 6596
0416 088 414
[email protected]

SOURCE: Allianz Australia







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