The latest APRA data on quarterly superannuation performance showed a -$2.3 net contribution flow for the first time since superannuation was introduced.
Personal contributions were particularly soft, at $7.8 billion, the lowest June quarter figure since 2016.
Notably, there were $37.4 billion in total benefit payments in the June quarter, a surge of 77.7 per cent from the three months before – reflecting a spike in early super lump sum payments.
While lump-sum payments totalled $26.8 billion, pension payments totalled $10.7 billion, largely in line with the previous quarter.
Superannuation assets totalled $2.9 trillion at the end of the quarter, a slight decrease of 0.6 of a percentage point over the 12 months prior. But total assets had increased by 3.7 per cent from the prior quarter to $2.1 trillion.
Canstar group executive, financial services, Steve Mickenbecker explained that while the total assets in superannuation might seem small, it is still a $16.6 billion hit to Australians nest eggs.
He also highlighted that superannuation funds are well equipped to deal with the falls in funds.
“There was early alarm in some circles about how superannuation funds would cope with the COVID-19 early withdrawal, but it has now shown itself to be a hiccup for the funds rather than a crisis, with APRA-regulated fund balances falling just -0.2 per cent,” Mr Mickenbecker said.
According to APRA, the industry-wide rate of return for superannuation entities with more than four members grew by 6 per cent after falls of 10.3 per cent in March.
The annual rate of return is now -1.1 per cent.
At the end of the quarter, superannuation members had 49.2 per cent of the $1.8 trillion for funds with more than four members invested in equities, with 24.1 per cent in international listed equities, 21 per cent in Australian listed equities and 4.1 per cent in unlisted equities.
Fixed income and cash investments accounted for 33.6 per cent of investments, with 20 per cent in fixed income and 13.6 per cent in cash.
Property and infrastructure accounted for 14.2 per cent of investments, while other assets, including hedge funds and commodities, accounted for 3.1 per cent.
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