Average super balances reach record highs says ASFA

New figures released by the Association of Superannuation Funds of Australia (ASFA) have confirmed the average superannuation balance has hit a record high of $172,834, with signs the gender superannuation gap is closing – albeit slowly.

According to Australian Taxation Office (ATO) data to June 2023, there are now 18 million superannuation account holders aged 15 years and over, with strong growth recorded across all age cohorts.

The super balances of those aged 65 to 69 years now average $420,934, with the youngest cohort to record over $100,000 in retirement savings the 40-t0-44-year-olds with $125,332 on average. There was also a large jump in the average super balance of 18-to-24-year-olds ($8,614) and 25-to-29-year-olds ($25,943), representing a 201 per cent increase.

While the gender super gap still remains, with men averaging $192,119 and women averaging $154,641 in account balances, women’s share of total superannuation savings has grown to 43.6 per cent from 41.9 per cent five years ago.

“The increase in the superannuation guarantee to 12 percent combined with strong investment returns from super funds mean Australians have more savings than ever put away for retirement,” ASFA chief executive, Mary Delahunty, said.

“This is great news. The superannuation system is helping Aussies achieve much more economic independence in retirement than would be possible if the system wasn’t set up three decades ago.

“And that’s crucial, because economic independence is closely tied to a dignified post-work life. The system is doing what it was designed to do, for more and more people every year.”

The research also indicated that the superannuation system has helped Australians save more than $1 trillion towards their retirement, with this trend only set to continue. According to modelling based off the data, a 30-year-old median wage earner with $30,000 in superannuation is on track to retire with $610,000 – well above the $595,000 needed to retire comfortably, according to ASFA’s own Retirement Standard.

The data also showed that while the age pension is no longer Australians’ primary source of income in retirement, a “significant” gender gap still remains in this aspect as well. In the 60-to-69-year-old cohort, 43 per cent of retired men said superannuation was their main income source; this is compared to 27 per cent of women retirees. For retirees aged 70 and over, this gap marginally closes but is still present with one-third of men and one-fifth of women reporting superannuation as their main source of income.

“The visionaries of the superannuation system foresaw an Australia that was less reliant on taxpayer-funded retirement, even as the population aged, because Australians would have substantial retirement savings of their own,” Delahunty said.

“More than thirty years later, we are seeing the fruits of that thinking in action.”

“As the superannuation system matures, policy measures aimed at improving gender equity, such as the implementation of superannuation on paid parental leave, are expected to reduce this gap for future generations,” the research said.