Australian Pension Fund Chairman Urges Caution on Consolidation

Australia should be cautious about consolidation among custodians of its A$3.5 trillion ($2.5 trillion) in retirement savings to ensure continued competition and to bolster the economy.

That’s the view of Wayne Swan, chairman at Construction & Building Unions Superannuation Fund and former Australian treasurer who sees the pensions having a “big role to play” in building a more stable Australian economy after supporting businesses through the pandemic. But “a little caution is necessary” over the the industry’s consolidation as “endless consolidation has its risks,” he said Wednesday.