Australia’s Superannuation System Grows into Global Investment Powerhouse
Australia’s superannuation system, known as “Super,” has become a major force in global capital markets. The pension pool now totals AUD 4.2 trillion, or 150% of the country’s GDP. This makes it one of the largest pension funds worldwide.
Nearly half of Super’s assets are invested overseas. This shift is changing global liquidity and foreign exchange flows. The funds are diversifying beyond Australian equities into international markets.
A recent Deutsche Bank Research report by macro strategist Lachlan Dynan highlights key growth drivers. These include investment returns and mandatory contributions. Australia’s Superannuation Guarantee increased from 3% in 1992 to 12% in 2025. This has created a strong foundation for capital growth.
The report also notes that Super’s growing size affects global markets. As funds convert contributions into foreign assets, their activity in FX swap and hedging markets rises. This often pressures currency bases. Today, 48% of Super assets are offshore, up from one-third ten years ago.
Deutsche Bank Strengthens Partnership with Australian Super Funds
Glenn Morgan, CEO of Deutsche Bank Australia, said the bank is working closely with Super funds. They develop multi-product strategies across FX, rates, derivatives, and structured credit. Morgan said, “The size, growth, and sophistication of Australia’s superannuation sector require increasingly global and bespoke solutions.”
Deutsche Bank’s Global Hausbank model offers Super funds direct access to global markets and risk management tools. This support is crucial as funds seek higher offshore yields. The partnership strengthens Deutsche Bank’s role in Asia-Pacific capital flows as Australian pension money moves abroad.
Crypto Gains a Foothold in Australia’s Retirement System
The Deutsche Bank report coincides with growing crypto adoption in Australia’s pension sector. Digital assets are quietly entering the system, especially through self-managed superannuation funds (SMSFs).
SMSFs represent about a quarter of Australia’s retirement pool. Platforms like Coinbase and OKX have launched crypto products tailored for these private pension funds. As of March, SMSFs held A$1.7 billion in crypto, a sevenfold increase since 2021.
John O’Loghlen, Coinbase’s Asia-Pacific head, said over 500 investors await its upcoming SMSF crypto service. OKX also reported stronger-than-expected demand after its June launch. AMP is currently the only major pension provider with disclosed crypto exposure, but interest is growing rapidly.
