2024: The Year of Superannuation Mega Mergers

In 2024, the Australian superannuation industry is set to witness a significant transformation as a series of mergers come to fruition. These consolidations are part of an ongoing trend aimed at creating more efficient, competitive, and member-focused super funds. Among these, the mergers of Mine Super and TWUSUPER, AvSuper with Australian Retirement Trust (ART), and Active Super with Vision Super, as well as Alcoa Super's merger with ART, stand out as pivotal moves that will shape the future landscape of retirement savings in Australia.

Mine Super and TWUSUPER: Forming Team Super

Mine Super and TWUSUPER are finalising their merger to become Team Super, a strategic alliance reflecting the combined heritage of serving transport, energy, and mining workers. This merger is emblematic of the industry's move towards larger funds that can offer their members lower fees, better investment options, and enhanced services, benefiting from economies of scale.

AvSuper and Australian Retirement Trust: Strengthening Through Consolidation

Another notable merger is between AvSuper and ART, which is progressing smoothly with a heads of agreement already in place. AvSuper, boasting assets of $2.3 billion and nearly 5,000 members, is set to join forces with ART, a super giant with over 2.2 million members and more than $240 billion in assets under management. This merger is expected to complete by the end of April 2024, marking a significant step towards offering members a robust platform with enhanced financial security for their retirement.

Alcoa Super Joins Australian Retirement Trust

ART's growth trajectory continues with its merger with Alcoa Super, bringing an additional $2 billion in funds under management and over 5,000 members into the fold. Scheduled for completion by March 2024, this merger underscores ART's strategic approach to growth, not just through consolidation but also by expanding its reach through direct and retail financial advisers.

The Implications of Superannuation Mergers

These mergers are reflective of a broader industry-wide push towards consolidation, driven by the recognition that larger funds can often provide more significant benefits to their members. Benefits include lower administrative costs, enhanced investment capabilities, and improved member services, which collectively contribute to better retirement outcomes.

The superannuation industry is rapidly evolving, with these mergers marking a new era of efficiency and member-focused service. By combining resources, these funds aim to leverage their collective strengths to provide superior value and security to their members, ensuring a more stable and prosperous retirement for Australians.

As the landscape of superannuation changes, members of these merging funds can look forward to being part of larger, more resilient entities that are well-equipped to navigate the complexities of the financial world, ensuring their retirement savings are in capable hands.

The mergers set to complete in 2024 not only represent a significant transformation in the Australian superannuation industry but also illustrate a commitment to enhancing the retirement outcomes for millions of Australians through strategic consolidation and growth.