Australian Superannuation Funds outlook for 2023

The Australian superannuation industry has been growing steadily over the years, and it is expected to continue to grow in 2023. The Australian government’s mandatory superannuation contribution scheme, coupled with a strong economy, has been the driving force behind this growth.

However, the industry is facing some challenges that may impact the performance of superannuation funds in 2023. Some of these challenges include:

1. Low-interest rates — Low-interest rates have been prevalent for a while, and they are expected to continue in 2023. This could impact the returns on investments made by superannuation funds.
2. Volatility in the global market — The COVID-19 pandemic has caused significant disruption to global markets, and this is likely to continue in 2023. This could lead to volatility in the stock market, which could impact the performance of superannuation funds.
3. Regulatory changes — The Australian government is constantly reviewing and updating regulations surrounding the superannuation industry. Changes to these regulations could impact the performance of superannuation funds.

4. The excessive Government spending over the period from 2019–2021 based around COVID-19.

Overall, the outlook for Australian superannuation funds in 2023 is positive, but there are some challenges that need to be overcome. It is important to note that past performance is not a guarantee of future performance, and it is always advisable to seek professional financial advice when making investment decisions.

This year seem to be on track for a loss of up to 4.8% on the average Superannuation Fund say some experts in the industry whilst others feel the loss won’t be as harsh.