The Australian superannuation system was founded on the assumption that market competition will deliver economic efficiency in a largely private defined contribution system. Since the Wallis Report (1997) explicitly articulated this view, total assets in the system have grown substantially...

Using official data and new econometric models based on how the industry actually works, we show the benefits of scale for members are limited, and confined to the non-profit sector which is structured to incur relatively low fixed costs compared with much higher variable costs. In Australian...