Between 2013 and 2023, private pension spending in Australia exhibited variable growth, starting at 5.02% of GDP in 2013 and reaching 6.73% in 2023. The fluctuations in annual growth rates highlight periods of significant increases, notably in 2015 and 2017, with year-on-year variations of 11.42% and 13.57%, respectively. Declines were also observed, such as in 2018 and 2021, with -14.19% and -5.83% year-on-year variations. The five-year CAGR leading up to 2023 stands at 2.84%, indicating moderate average annual growth in recent years.
Future trends to watch include steady increases in forecasted values, with private pension spending expected to rise to 7.42% of GDP by 2028. This period will likely see continued, albeit moderate, growth with a forecasted 1.55% CAGR over the next five years. Close attention should be paid to economic factors and policy changes that could impact this trajectory.
