Jun 30, 2026 – 10.58amThe rapid growth of the $4.5 trillion pension sector and the concentration of its power among a few large funds are magnifying risks in Australia’s financial system, according to a first-of-its-kind review of how the wider economy would respond to acute stress.In a hypothetical scenario examined by the financial risk regulator, the big four banks experienced their most severe liquidity stress in 50 years, while the six largest superannuation funds dealt with “member withdrawals and switching significantly surpassing levels observed” during the pandemic.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles