Retail allocated pensions represent around 30 per cent of FUM, with a total of $160 billion, while 2 per cent is held in annuities and $32 billion, or 6 per cent, is held in industry fund allocated pensions.

By December 2024, retail allocated pensions funds under management are projected to reach $408 billion and represent 38 per cent of the total market while FUM held in self-managed super are projected to reach $515 billion but represent 48 per cent of total assets.

This represents a reduction from the current 62 per cent share SMSFs have in assets in the retirement income phase.

According to the report, a further $18 billion or 2 per cent of total assets are projected to be held in annuities and $136 billion or 12 per cent of total assets in industry fund pension accounts.

Total superannuation funds under management held in the accumulation phase are projected to increase at an average annual growth rate of 7.4 per cent to $3.1 trillion at December 2024, the report said.

The research house has also predicted the risk market will be in “jeopardy”, with risk claims continuing at historically high levels.

Based on the study, individual lump sum in-force premiums are projected to increase “from $6.1 billion at December 2014 to $15.3 billion by December 2024”.

“Individual Disability Income in-force premiums are projected to increase from $2.3 billion at December 2014 to $6.0 billion by December 2024,” said the report.

The report also predicts group risk in-force premiums will increase from $5.4 billion at December 2014 to $15.8 billion by December 2024.