As the curtain falls on 2024, it’s time to reflect on a year that kept us all on our toes. Change was the name of the game, with economic twists, swings against incumbent political parties worldwide, climate reckonings, and industry shifts dominating the landscape. Here’s our wrap-up:
Economic snapshot: Steady as she goes, inflation still stubborn
The RBA held the cash rate at 4.35%—a careful shuffle to juggle inflation and stability. Inflation stayed pesky and above target but should ease (slowly) through 2025.
Rising costs challenged wallets, but Aussies dug in, buoyed by low unemployment and plenty of grit. Spending didn’t stop, though we all squinted harder at price tags.
Investments: A mixed bag with global ripples
The ASX 200 stumbled in energy and materials but found footing in financials and utilities. Globally, China’s slowdown highlighted just how tethered we are to international markets.
Over in the US, the “magnificent seven” tech giants hogged the spotlight, driving market gains and concentration risk. Back home, Australia’s investment managers had their hands full navigating the unpredictable.
Superannuation: Growing strong but facing challenges
Super funds had a cracker year, with assets soaring past $3.5 trillion and solid investment returns. Rising contributions (thanks, Super Guarantee) added to the wins.
But it wasn’t all smooth sailing. Regulatory hurdles, sustainability pressures, and the ongoing quest for better member engagement kept funds on their toes.
Treasury announced initiatives to simplify retirement, from enhancing the MoneySmart website to fostering innovative products like money-back guarantees. With principles for best practices in the pipeline, the aim is clear: make retirement simpler, smarter, and more secure for Australians. But superannuation funds are crying out for deeper reforms to help deliver better retirement outcomes – they need data access e.g. from the ATO and need advice reforms to deliver tailored, low-cost advice for members. Retirement isn’t one-size-fits-all – it’s as individual as the people living it.
Life insurance: Tech to the rescue
In 2024, insurers doubled down on digital. Competition and evolving customer expectations forced a shift toward slicker, more responsive service. The goal? Delivering value in a crowded, mature market.
Looking ahead, cutting costs and finding efficiencies will be the playbook for 2025.
Climate change: It’s here, and it’s not waiting
The climate clock ticked louder in 2024, with extreme weather becoming nastier and less predictable. Trustees are being called to step up and understand climate risk.
Industry Super’s energy transition blueprint highlighted the link between long-term returns and sustainable systems. Australia has all the ingredients—sun, wind, lithium—but the challenge is moving from potential to action. The funds are ready to invest; now we just need the opportunities.
Looking ahead: Ready for 2025
As 2025 looms, cautious optimism is the mood. Slower growth is likely, but inflation should ease, and the job market looks solid. Across industries, adaptability will be key—harnessing tech, engaging customers, and keeping strategies sharp.
At McGing, we’re ready to guide our clients through whatever’s next. 2024 taught us plenty about resilience, and we’re bringing those lessons into 2025. Here’s to a year of fresh opportunities, fewer curveballs, and, fingers crossed, a bit less chaos.
Neekhil
With 20 years global experience in actuarial, superannuation and investment consulting, Neekhil Shah is the conduit to clients and the McGing team of analysts.