City Of London
City of London Looks to Australian Mega-Pension Funds as Model
- Lord Mayor says superannuation industry holds lessons for UK
- Australia projected to be second largest global market by 2030
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Britain is studying Australia’s pensions mega funds as it seeks to learn lessons from the success of the A$4.1 trillion ($2.6 trillion) sector, said the Lord Mayor of London’s main financial district.
The scale of Australia’s biggest pension funds was impressive after “remarkable” reforms in 1991 that mandated employers to contribute to retirement savings, and holds lessons for the UK, said Alastair King, Lord Mayor of the City of London. Australia’s money pool has grown by almost 500% over the last two decades, and is projected to become the second largest global pension market by 2030, according to research by Thinking Ahead Institute.