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Retirement incomes market to hit $1.2tn by 2025

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By Taylee Lewis
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2 minute read

The retirement incomes market is expected to have the largest growth in funds under management over the next 10 years, projected to reach $1.21 trillion by 2025, according to DEXX&R.

A recent DEXX&R Market Projections Report revealed that total assets held in the retirement incomes market will likely increase by 7.1 per cent per year – up from $608 billion in June 2015 to $1.21 trillion in June 2025.

Retail funds and industry funds are also set to have the largest growth rate within the retirement income market over the next 10 years. 

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Retail accounts are expected to hold 34 per cent of total assets by 2025, or $406 billion, up from 27 per cent in 2015.

Moreover, industry funds are projected to hold $142 billion in total funds under management, 12 per cent of total assets, up from six per cent in 2015. 

The report indicated that self-managed super funds in the pension drawdown phase, which currently make up 55 per cent of the retirement incomes market, will likely see a decline. 

According to DEXX&R, by 2025 self-managed super accounts are projected to hold 44 per cent of total assets, or $523 billion.

Total superannuation funds under management held in the accumulation phase are expected to increase by an average annual growth rate of 6.9 per cent to $2.9 trillion by June 2025, the report stated. 

Retirement incomes market to hit $1.2tn by 2025

The retirement incomes market is expected to have the largest growth in funds under management over the next 10 years, projected to reach $1.21 trillion by 2025, according to DEXX&R.

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