Superannuation Giants: A model for global financial strength

Lauded by politicians and industry leaders as 'the envy of the developed world', Australia's compulsory superannuation industry has quietly become one of the world's largest institutional investors.

This article, published by QIC, provides a short background on Australia’s superannuation sector.

Key takeaways:

• Australia’s compulsory superannuation industry, praised as the ‘envy of the developed world’, has transformed savings and investment patterns, significantly reducing the financial burden on the government as the population ages.

• The superannuation market is mature, managing the fourth largest pension pool globally, and expected to take second place by 2035.

• The superannuation industry has strengthened and stabilised the Australian investment landscape, fostering a sophisticated financial sector with deep expertise, opportunities and talent.

• With significant capital pools, superannuation funds are looking to international markets, opening up bigger opportunities for foreign capital to invest in Australia.

• Australia’s stable government and generally centrist politics, robust legal system, and a triple-A credit rating that reflects sound fiscal management, means that the country is a safe haven for offshore capital seeking consistent, secure returns.

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Read the full article here.