Quarterly superannuation performance statistics highlights - December 2023

Industry overview

Total superannuation assets increased by 3.8 per cent over the quarter to reach $3.7 trillion at the end of December 2023 (Chart 1). This increase was driven by strong growth in APRA-regulated funds, which increased by $0.1 trillion dollars over the quarter, and strong returns from financial markets. Of the total superannuation assets, $2.6 trillion are in APRA-regulated funds.

Chart 1: Assets of superannuation entities

This chart shows the composition of assets of the Australian super industry from Dec 22 to Dec 23. Total assets have gradually risen over time.

Entities with more than six members

The comments below are based on superannuation entities with more than six members.

Contributions, benefit transfers and benefit payments

Contributions reached $42.2 billion for the December 2023 quarter, rising by 11.7 per cent to $172.6 billion in the year to December 2023. Of this, employer contributions were $34.0 billion for the quarter and $129.9 billion for the year ending in December 2023, which was 13.0 per cent higher compared to the previous year. The significant growth in employer contributions over the year was driven by the increase in the Superannuation Guarantee to 11% and a 3% increase in the number of people employed. Members contributed $8.2 billion in the quarter and $42.7 billion in the year ending in December 2023, which was 8.0 per cent higher than the previous year.

Benefit payments totalled $28.4 billion for the quarter and increased by 21.5 per cent to $111.1 billion for the year ending in December 2023. This increase is mostly attributable to a 26.3 per cent increase in lump sum payments. Total benefit payments for the quarter comprised of lump sum benefit payments of $15.5 billion and pension payments of $13.0 billion (Chart 2).

Net contribution flows (contributions plus net benefit transfers, less benefit payments) were $12.7 billion in the quarter (Chart 3). Net contribution flows for the 12 months to December 2023 declined by 9.9 per cent to $57.7 billion, driven by the increase in benefit payments.

Chart 2: Benefit payments

This chart shows the breakdown of benefit payments by lump sums vs pensions from Dec 2018 to Dec 2023. Total benefit payments have risen over time.

Chart 3: Net contribution flows

This chart shows net contribution flows from Dec 2018 to Dec 2023. Net contributions have decreased for the 12 months to December, driven by the increase in benefit payments.

Financial performance

The rate of return (ROR) for entities with more than six members for the December 2023 quarter increased by 4.3 per cent since September 2023 (Chart 4). This high quarterly return was driven by strong growth in financial markets, particularly equities as the ASX 300 index finished the quarter near all time highs. The ROR for the year ending in December 2023 was 9.5 per cent.

Chart 4: Quarterly rate of return

This chart shows the quarterly rate of return for superannuation funds from Dec 2018 to Dec 2023. It has fluctuated over time with the performance of equities, fixed income, and other asset classes.