A large and growing industry
Superannuation is Australia’s compulsory retirement savings system. Introduced in 1992, it’s a defined contribution system that continues to underpin substantial and ongoing net cash inflows into the superannuation industry - and a stronger financial position for Australians in retirement.
Today, it’s recognised as one of the best pensions systems in the world. Valued at A$4.3 trillion, it's already the 4th largest pension market in the world1 - and set to become the 2nd largest by 2035, surpassing both the Canadian and UK markets2.
Australia is already the 4th largest pension market in the world
Fastest growing pension market
Set to become the 2nd largest pension market in the world
Bigger than Australia’s GDP and ASX
A defined contribution system that underpins recurring cash inflows
Continued strong growth
How the superannuation system works
Under Australian Government legislation, employers must contribute at least 12% of an eligible worker’s earnings to their superannuation (retirement savings) fund. This is known as the Superannuation Guarantee.
In Australia, superannuation is a tax-effective investment – and in most cases, it will be the largest or second largest asset Australian retirees have outside their home.
Individuals are also incentivised to make additional voluntary contributions throughout their working lives.
A defined contribution system focused on long-term returns
Superannuation investments have two phases:
- Accumulation
- Pension
The accumulation phase focuses on long-term growth and total returns, rather than liability matching. This means that members can benefit directly from compounding net earnings over time.
When individuals reach 60 years of age and have retired, or have reached age 65, they are entitled to access the full balance of their superannuation investments – either as a lump sum or roll it into a pension/income product.
A competitive market
While superannuation is compulsory in Australia, members are generally able to choose their own superannuation fund (and change at any time).
As a profit-for-member fund operating in a competitive customer landscape, AustralianSuper is hyper-focused on delivering the best risk-adjusted returns for members.
AustralianSuper’s market position
AustralianSuper has been voted the most trusted fund in superannuation for 13 years running9 and has the largest market share, both by assets under management and by number of members10.
Types of funds
More than 75% of Australia’s superannuation sector is managed by profit-for-member (known as “industry funds”), retail, corporate and public sector funds. Superannuation can also be self-managed.
Profit-for-member funds
Industry superannuation funds are run only to benefit their members. Member fees are set to cover the costs of operations, and no dividends or profits are paid to shareholders.
AustralianSuper is an industry (profit-for-member) fund and the largest superannuation fund in Australia10.
Australia’s retirement income system
Superannuation is recognised as one of the best pension systems in the world and is a core pillar of Australia’s retirement income system.
The 3 pillars of Australia’s retirement income system
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Important information to consider
- Mercer CFA Institute Global Pension Index, 2025. Available at https://www.mercer.com/insights/investments/market-outlook-and-trends/mercer-cfa-global-pension-index.
- Super Members Council, Global Pension Rankings, February 2025.
- Australian Prudential Regulation Authority (APRA) Quarterly Superannuation Statistics, June 2025.
- Based on Australian Bureau of Statistics: nominal GDP (in $A) in the year to Q1-2025 = A$2.746 trillion.
- Bloomberg: Market Capitalisation of Australian All Ordinaries Index (in $A) as at Close of Business 28 July 2025 = A$3.32 trillion.
- Association of Superannuation Funds of Australia (ASFA), Superannuation Statistics, July 2025.
- Calculations based on Thinking Ahead Institute, Global Pension Assets Study 2025, February 2025.
- SMC, Global Pension Rankings , February 2025 and Thinking Ahead Institute Global Pension Assets Study, 2025.
- Readers Digest Most Trusted Brands – Superannuation category winner 2013–2025, according to research conducted by independent research agency Catalyst Research. Awards and ratings are only one factor to be taken into account when choosing a super fund.
- APRA Quarterly superannuation fund level statistics June 2025 (Released September 2025).
- Based on Australian Bureau of Statistics: As at May 2025, ABS Full-time average weekly total earnings were $2,086. As at October 2025, normal rates of Age Pension before tax were $1,178 per fortnight (Services Australia).
- Australia’s largest super fund - APRA Quarterly superannuation fund level statistics June 2025 (Released September 2025). Ranked 17th by assets under management - Thinking Ahead Institute, Global Top 300 Pension Funds, September 2025.
- Thinking Ahead Institute, The Asset Owner 100: The Most Influential Capital on the Planet, November 2024. Ranked 32nd.