Australian Retirement Trust is set to merge with the $8 billion Australia Post Superannuation Scheme, just days after completing the merger between QSuper and Sunsuper.
Australia’s largest superannuation fund AustralianSuper and Club Plus Super are exploring a combination to form an even bigger fund with A$203 billion (US$156.31 billion) of assets.
It’s the latest merger plan in an industry with more than 185 funds of varying sizes and A$3.04 trillion of total assets as of December 2020, serving around 15 million members, according to data from the Association of Superannuation Funds of Australia (ASFA).
Many of the funds are looking to merge to cut costs, especially in the wake of the coronavirus pandemic. ASFA says around two-thirds of funds incurred a loss in the 12 months to June 2020 because of the pandemic.
Australians should consider putting their money in their superannuation instead of property as fund balances are now growing faster than house prices.
Analysis by Chant West showed median growth-orientated retirement balances surged by 12.2 per cent since July 1 - something unthinkable only a year ago.
The double-digit growth in just nine months, to the end of March 2021, was even stronger than the 7.7 per cent surge in Sydney s median house price during the past year.
Australia s share market was this week close to reaching a record high, with the benchmark S&P/ASX200 just 1.5 per cent below the all-time peak of 7,197 set in February 2020 shortly before the Covid shutdowns.