DEXX&R’s report stated the total funds under management (FUM) held in both the accumulation phase and pension phase are projected to increase from $543 billion at December 2013 to $922 billion by December 2023.

Total retirement incomes FUM for December 2013 is segmented into $294 billion (65 per cent) held in SMSFs, $149 billion (33 per cent) in retail allocated pensions and $11 billion (two per cent) in annuities.

By 2023 this is expected to increase to $508 billion (57 per cent) held in SMSFs, $366 billion (41 per cent) held in retail allocated pensions and $20 billion (two per cent) in annuities.

“Demand for advice will [also] increase from retirees with SMSFs once they reach the point that they no longer wish to actively manage their investments and their account balance falls to a level where a retail allocated pension offers a more cost effective option than the fixed costs incurred in running an SMSF,” DEXX&R said in a statement.

Overall, the total superannuation market is projected to increase by an average annual growth rate of 7.8 per cent up to 2023.