Australia’s superannuation funds under management will more than double to $3.3 trillion by 2026 from $1.3 trillion but the number of funds will shrink in less than five years due in part to mergers as funds seek economies of scale, says actuaries Rice Warner.

The number of Australian Prudential Regulation Authority regulated corporate funds will fall to 35 by June 2016 from 143 as of June 30 this year, according to Rice Warner. The number of industry funds will drop to 42 from 65 during the same period, the firm says.

There will be 25 public sector funds by June 2016 compared with 37 as of June this year, says Rice Warner. The number of commercial funds will slide to 95 from 141, it says.

The number of small Australian Prudential Regulation Authority regulated funds will drop to 1,500 by June 2016 from 3,519 as of June 30 this year, Rice Warner forecasts.

“The industry is entering a new phase as the baby boomers begin to retire,” says Rice Warner in a statement.

“They will slowly drawn down their pension benefits at a time when there is intense market volatility that shows no sign of abating,” the firm says.