Australian retirees could become the richest in the world, according to new research.

As a voice for more than 11 million Australians, the Super Members Council says the nation’s pension assets will surpass the UK’s in 2030 and Canada’s by 2031.

The milestones will mean the collective nest egg will become the second richest in the world behind only the United States’ despite having the 55th highest population.

The council’s analysis shows that between 2001 and 2023, Australia’s cumulative superannuation contributions were the highest among OECD countries and well above the OECD average.

Super Members Council CEO Misha Schubert said Australia’s super system was the envy of the world.

“Australia has the fastest growing super system globally – twice the rate of international peers,” she said.

“We’re the only OECD country where spending on government-funded pension payments is falling and will continue to fall.”

Ms Schubert said superannuation was a “great Australian success story” thanks to its compulsory and universal nature combined with strong preservation rules.

“Three key policy settings have made Australia’s super system one of the biggest and most effective internationally and underpin its long-term success,” she said.

“Because super is universal, compulsory and preserved until our retirements, total system contributions are projected to reach $141 billion for the financial year 2024-25.”

“These safeguards – especially that people’s investments are preserved until retirement – are the secret sauce of super, giving Australians in their millions the power of compound returns over decades.”

Funds under management in Australia are currently $4.1 trillion, exceeding any single Sovereign Wealth Fund including Norway ($2.8 trillion) and China ($2.1 trillion).

A delegation of Australian super fund representatives is currently in the US looking for new investment opportunities to further grow Australians’ super savings.

The group will join Australia’s Ambassador to the US, Kevin Rudd, and Australia’s Consul-General in New York, Heather Ridout, in Washington DC and New York at the Superannuation Investment Summit.

Melissa Meehan
(Australian Associated Press)