Retirement savings providers tipped to shine

Sam Stubbs

IBISWorld senior industry analyst Matthew Reeves said the closure of international borders would constrain economic recovery in the current financial year and beyond.

But there would be some industries that would “fly” in 2020 and 2021 regardless, he said, and retirement savings were one of them.

“The superannuation funds industry is anticipated to rebound strongly from the Covid-19 outbreak to record revenue growth of 104.8% in 2020-21, to $14.2 billion.

“Revenue in the industry is derived from investment in global financial markets, which are expected to recover as investor sentiment improves and fiscal stimulus supports economic activity. Industry assets, which are a more accurate indicator of overall industry performance, are expected to grow by 10.3% in 2020-21 to $101.2 billion, outperforming growth of only 5.0% in 2019-20.”