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.
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.