Saturday 30 March 2013

Strong Advancement Predicted for the Retirement Industry

By Brett A. Lamb


Superannuation and self managed super funds are growing, expanding fast actually! Expect some financial insufficiencies when you stop working if you did not take care of your retirement while you're still employed.

While a lot of people have lost trust in australia's superannuation system, primarily because of slacking share market and a slowing global economic system, there are great signs that the superannuation industry would be going strong over the next several years.

There are various indicators pointing towards, and lots of analysts forecasting that Australias superannuation industry is expected to have strong progress this year and should continue to show solid annual expansion over the next 10 years.

This prediction is strongly supported by the research performed by DEXX&R, a reputable financial service research firm. Their latest market report is predicting that the total superannuation market would have an average annual expansion rate of 9.1% to $3.25 trillion by June 2022.

DEXX&R's forecast for the total financial services market, which includes the master trust market and post-retirement sector, is expected to be 8.6 per cent to $3.75 trillion in the same period.

Although the perspective is positive, especially over the 10 year period, it is important to acknowledge that the Future of Financial Advice (FOFA) reforms are going to have the potential to negatively impact predictions for the 2013 year.

The upcoming FOFA reforms provides the financial services industry with a tumultuous year whilst financial advisors adapt their business models and business strategies whilst these regulatory changes come into play.

The progress of the Australian superannuation market is unavoidable despite all the concerns. More individuals will retire than ever before and opportunities for wealth creation will because of the global financial slow down also grow.

It's your responsibility to deal with your super, and not simply an option that you could just ignore. It's not too late, regardless of what age you are.




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