This is the fourth in a series of information notes to showcase the results of Treasury’s new dynamic microsimulation Model of Australian Retirement Incomes and Assets (MARIA)2. This note shows MARIA projections of total superannuation balances over time, which is a measure of the size of the superannuation system.
The total value of superannuation balances is projected to continue to grow relative to the size of the economy. This is primarily driven by fund earnings continuing to grow relative to the size of the economy. While superannuation contributions currently exceed drawdowns, this gap is projected to close in the future as more people who have benefited from a full career with compulsory superannuation move into retirement.
Despite an ageing population, a maturing superannuation system means Age Pension expenditure remains stable over the long-term.
1The views expressed in this note are those of The Treasury and do not necessarily reflect those of the Australian Government. This note was prepared by Jacob Stone, Mark Bott, Katarina Trinh, Elliot Lavers and Jarek Kowcza in Revenue Group.
2MARIA simulates a range of life events each year for each individual in the model to project people’s income and assets in retirement.