According to new figures released by APRA, superannuation assets totalled $3.313 trillion at the end of the June quarter, down 0.5 per cent or more than $15 billion compared to a year earlier.
Total APRA-regulated assets were down 1.1 per cent to $2.241 trillion over the period, of which $884.5 billion, or 1.9 per cent less, was invested in MySuper products.
The prudential regulator explained that the drop in super assets “reflected volatility in financial markets following global interest rate increases in response to high levels of inflation, constrained supply chains and the ongoing uncertainty due to the conflict in Ukraine”.
From the March to the June quarter, total super assets dropped 3.7 per cent or around $129 billion, while total APRA-regulated assets declined 4.1 per cent or over $96 billion.
Total contributions in the year to June for entities with more than four members soared 15.2 per cent to $146.5 billion.
“The strong increase in contributions is due to increases in both employer and personal member contributions, likely reflecting unemployment rates having dropped to record lows over the year,” APRA said.
Employer contributions lifted 10.2 per cent to $108.6 billion, supported by the increase to the super guarantee contribution rate to 10 per cent in July last year.
Additionally, personal member contributions surged 32.7 per cent to $35.3 billion, which APRA said was buoyed by the accumulation of household savings during the onset of the pandemic.
Benefit payments were down 9.5 per cent to $85.8 billion, including a 20.1 per cent drop in lump sum payments to $45.0 billion in reflection of benefit payments returning to longer-term trends following the closure of the early release scheme.
Net contribution flows climbed 88.1 per cent to $63.6 billion, also linked to the closure of the early release scheme along with the strong growth seen in contributions.
Meanwhile, pension payments increased 6.1 per cent to $40.9 billion over the year in line with long-term trends and expected rises in living costs.
