Retirement Income FUM to reach $1.08t by 2024
The total assets held in retirement incomes market is projected to increase $551 billion to $1.08 billion by December 2024, according to a report released by DEXX&R today.
The financial services research firm found the current self-managed super funds (SMSF) of $324 billion in funds under management (FUM) will increase to $515 billion by 2024. However, its representation in the market will drop 14 per cent to 48 per cent in terms of total market share.
Retail allocated pensions will increase its representation of the market by eight per cent to 38 per cent with FUM projected to reach $408 billion.
By 2024 annuities will increase $7 billion to $18 billion, and industry fund allocated pensions will increase to $136 billion from the current $32 billion.
The report found the total superannuation in FUM held in the accumulation phase will increase at an average annual growth rate of 7.4 per cent to $3.1 trillion by December 2024.
DEXX&R said in terms of risk the individual and group risk markets will continue to record year on year growth in-force premium.
However, the report noted that its forecast did not take into account the possible impact of the life insurance Trowbridge Report recommendations could have on future new businesses.
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