Superannuation market dynamics

Growth across MySuper, Choice and retirement segments remain strong, while market concentration continues to increase, and platforms and managed accounts play an increasingly important role in how portfolios are constructed and delivered to members.

At the same time, regulatory scrutiny is intensifying, with a greater focus on investment governance, transparency, and delivering measurable outcomes across the member lifecycle, alongside continued shifts in asset allocation and the role of private markets within portfolios.

Total superannuation funds under management reached $4.4 trillion as at March 2026. The total assets in superannuation have grown by an impressive 118% over 10 years to March 2026, highlighting the strong long-term expansion of the system.

Over the past 10 years, the market structure has shifted quite materially. The not-for-profit sector has been the clear winner, increasing its share from around 30% to 55% over the past decade. In contrast, SMSFs have declined from 42% to 24%, while retail funds have reduced from 29% to around 20%.

Overall, what this tells us is that scale, efficiency, and consolidation continue to reshape the competitive dynamics of the industry.

Product segmentation within APRA-regulated superannuation funds shows that MySuper remains a core pillar of the system, with approximately $1.2 trillion out of total $3 trillion in APRA-regulated assets.

Alongside this, choice products account for around $1.5 trillion, split between $927 billion in accumulation products and about $600 billion in retirement products, while defined benefit funds represent roughly $150 billion.

What is particularly notable here is the growth in retirement products. Over the five years to December 2025, retirement funds under management (FUM) recorded the strongest growth at 45%, reflecting the ageing member base. This trend is also evident in account growth, where retirement accounts increased by 19%, compared to 10% growth in MySuper accounts, while choice and defined benefit accounts have declined.

This shift toward retirement products is expected to accelerate further as demographics continue to evolve and more members transition into retirement.