Australian superannuation assets declined 0.5% to A$3.31 trillion ($2.28 trillion) for the fiscal year ended June 30, as a mix of inflationary pressures, rising interest rates and geopolitical tensions caused asset prices to sag, according to the latest industry update by the Australian Prudential Regulation Authority.
APRA's report noted that the three months ended June 30 were particularly volatile, with asset prices retreating against the backdrop of rising interest rates and worsening inflationary pressures. Total assets for the quarter slumped 4.2%, or A$104.3 billion.
For the 12 months through June 30, Australia's retirement asset pool shrank even as contributions to the country's super system jumped by 15.2% from the prior year to A$146.5 billion, reflecting the fall of unemployment rates to record lows during the year, the report said.
For the year, benefit payments dropped 9.5% to A$85.8 billion. Of that total, lump sum payments tumbled 20.1% to A$45 billion, reflecting a return to longer-term trends after an "early release" program the year before gave Australians facing hardship due to the pandemic access to as much as A$20,000 of their retirement savings. Pension payments for the latest year, meanwhile, came to A$40.9 billion, an increase of 6.1% from the year before.
