Superannuation assets inch to nearly $4.8tn

Total superannuation assets hit nearly $4.8 trillion in the last financial year, marking a 9% rise, namely driven by the rise of industry funds.

APRA's newly released statistics for the year ending June 30 showed Australians' retirement savings reaching another milestone of $4.77 trillion.

Industry funds' assets leaped 16% year on year to $1.8 trillion, comprising 38% of the total assets.

SMSFs posted an annual rise of 4% to reach $1.1 trillion in assets, accounting for a 23% market share.

Retail super funds have yet to crack the $1 trillion mark, growing 10% over the prior corresponding period to $933.2 billion.

The retail sector comprises 48 entities versus the industry funds' 19 and the public sector's 10.

Public sector funds grew by 10% over the period to $653.8 billion.

There are only two corporate funds left in Australia - the Mercer Super Trust and Russell Investments Master Trust.

Mercer Super Trust has more than $71 billion in assets under management while the Russell Investments Master Trust has about $11.3 billion.

Deloitte predicts the total asset pool will exceed $12 trillion by 2045, with more consolidation and mergers eventuating.

Twelve "mega-funds" each with assets of more than $100 billion are set to dominate within the next few years.

As for corporate funds, the study forecasts the remaining two will eventually move into public offer industry funds or retail master trusts that are already or have become aligned with their industry or provide the flexibility to maintain their bespoke insurance arrangements.

Public sector superannuation funds on the other hand will "continue to grow over the coming years, albeit at a slower pace and increasingly concentrated in accumulation rather than retirement assets," Deloitte said.

"While public sector funds will continue to benefit from ongoing contributions for active members, their overall asset growth is expected to moderate as mature membership profiles, benefit payments and scheme specific funding arrangements increasingly offset inflows."

The Public Sector Superannuation Scheme, Military Superannuation & Benefits Fund No 1 and CSS Fund are some of the biggest government funds.