Australian annuities - from boom to bust
The Australian superannuation system contains over A$1.2 trillion of assets, but the country’s annuity industry has yet to see any tangible inflow from the sector. As baby boomers retire, will this change and if so, does the industry have the risk management capability to deal with it? Andrew Sheen reports
Driven by trade union activism and government support, the Australian superannuation system exploded in size during the mid-1980s with the Australian Council of Trade Unions claiming that by 2004 more than 90% of workers had been enrolled in a ‘super’ scheme. Funded by compulsory employer contributions and voluntary employee top-ups, the scale of coverage means the collective assets of the supers stand at A$1.2 trillion (£680 million), according to the Australian Prudential Regulation Authority
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