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The Role of Superannuation in the Financial Sector and in Aggregate Saving: A Review of Recent Trends

Author

Listed:
  • Malcolm Edey

    (Reserve Bank of Australia)

  • Robin Foster

    (Reserve Bank of Australia)

  • Ian Macfarlane

    (Reserve Bank of Australia)

Abstract

Assets with superannuation funds represented the fastest growing of the major components of household wealth during the 1980s. This paper reviews the causes of that growth, and its effects on private saving and on the pattern of financial intermediation. It is found that the growth of superannuation funds during this period was mainly a result of the funds’ high earnings rates; there was relatively little change in the net rate of new contributions by members. This fact makes it hard to argue that growth of the superannuation sector came at the expense of other types of financial intermediaries. The relative stability of members’ contributions also helps to explain why superannuation has not yet had a noticeable effect on the level of private saving.

Suggested Citation

  • Malcolm Edey & Robin Foster & Ian Macfarlane, 1991. "The Role of Superannuation in the Financial Sector and in Aggregate Saving: A Review of Recent Trends," RBA Research Discussion Papers rdp9112, Reserve Bank of Australia.
    • Handle: RePEc:rba:rbardp:rdp9112
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    File URL: https://www.rba.gov.au/publications/rdp/1991/pdf/rdp9112.pdf
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    References listed on IDEAS

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    Cited by:

    1. Warren Tease & Jenny Wilkinson, 1993. "The Provision of Financial Services – Trends, Prospects and Implications," RBA Research Discussion Papers rdp9315, Reserve Bank of Australia.
    2. Malcolm Edey & John Simon, 1996. "Australia's Retirement Income System: Implications for Saving and Capital Markets," NBER Working Papers 5799, National Bureau of Economic Research, Inc.
    3. Vince FitzGerald, 1996. "Public Policy and National Saving," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 3(1), pages 3-16.
    4. Malcolm Edey & Brian Gray, 1996. "The Evolving Structure of the Australian Financial System," RBA Research Discussion Papers rdp9605, Reserve Bank of Australia.

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