A key architect of the compulsory retirement savings system lauds its many achievements, stretching from the national economy to the individual. Where it’s double faulting is in serving members – and it needs to be addressed promptly.
With performance and diversification driving demand, these funds are expected to experience four-fold global growth over the next decade to nearly $AU65 trillion.
Aussie funds improve global rankings
By Penny Pryor
All Australian funds moved up the size rankings in the latest annual survey of the world’s top 300 retirement plans, produced by publisher Pensions & Investments and consulting firm Towers Watson.
Of the 15 Australian funds that appear on the list, five are in the top 100, with the Future Fund having the highest ranking at 29th.
Total assets of the world’s largest 300 pension funds increased by 9.8 per cent to US$14 trillion over the year, and that sum represents 47 per cent of the total global pension assets, according to a report in Pensions & Investments last week. Towers Watson is scheduled to publish its figures tomorrow (September 10).
The biggest retirement fund in the world remains Japan’s Government Pension Investment fund, with assets of US$1.292 trillion, even though its assets had fallen from US$1.395 trillion in 2012. The assets of the second largest retirement fund – Norway’s Government Pension fund – rose from US$575.5 billion, to US$712.6 billion over the year.
Also of interest was the rise in funds by China’s National Social Security fund, which increased assets to US$177.5 billion from US$133.7 billion the previous year, and improved its ranking from 13 to 10.
The table below, in US dollars, is based on the 2013 and 2012 P&I and Towers Watson rankings.
