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Super contributions record strongest yearly growth since 2007

28 Aug 2012
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The Financial Services Council’s Bond Report released today shows contributions to APRA regulated superannuation funds in the 2011-12 financial year recorded their strongest growth since before the global financial crisis.

Total contributions in 2011-12 were $85.9 billion up by $5.8 billion or 7.3 per cent on the prior financial year.

Chief economist of the Financial Services Council, James Bond said: “The strong growth in superannuation flows are being driven by good employment numbers with compulsory contributions growing by $6.1 billion or 9.5 per cent in the 2012 financial year.”

In contrast to employer (compulsory) contributions, member (discretionary) superannuation contributions fell by $0.2 billion in 2011-12 to $16 billion.

“Discretionary flows continue to disappoint reflecting a lack of consumer and investor confidence,” Mr Bond said
“Although discretionary flows represent only around 20 per cent of total flows, strong voluntary flows are necessary if Australians are to have enough money saved for their retirement,” Mr Bond said.

Total contributions for the year, as reported by APRA, were $90 billion. However, to ensure accurate year-on-year comparisons the Bond Report has removed a one-off contribution by the NSW Government of $4.6 billion in the June quarter to contribute to its superannuation liability. This effectively doubled contributions to public sector funds in the quarter.

The FSC’s Bond Report into superannuation industry trends is based on APRA’s quarterly data on contribution to all APRA-regulated superannuation funds.

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