Australians’ superannuation balances have hit a record high, and the news is nothing short of exciting. The rise in savings across the country marks a new era of financial independence for many. With women’s share of savings growing and fewer people relying on the age pension, Australia’s retirement system is proving to be more successful than ever.
Record High for Average Super Balances
According to recent research from the Association of Superannuation Funds of Australia (ASFA), the average super balance has now reached a record $172,834. It’s a strong sign that Australians are taking their retirement savings more seriously, with some impressive growth across all age groups. Specifically, Australians aged 65 to 69 now have an average of $420,934 in their super accounts—an encouraging number as they approach retirement.
Gender Gap Continues to Close
The gender gap in superannuation balances is still present, but it’s getting smaller. On average, men’s balances stand at $192,119, while women’s are lower, at $154,641. However, women now control 43.6% of the total super savings in the country, up from 41.9% just five years ago. The gap continues to close thanks to policy shifts like the recent changes to the Low-Income Superannuation Tax Offset, which are expected to further level the playing field.
Superannuation System Helps Australians Save More
Interestingly, the superannuation system has generated about $1 trillion in savings that Australians wouldn’t have accumulated otherwise. Take, for example, a 30-year-old median wage earner. With $30,000 already saved, they’re now on track to retire with $610,000—well above the $595,000 needed for a comfortable retirement.
A Shift Away from the Age Pension
This marks a huge shift in how Australians are funding their later years. Superannuation is increasingly becoming the main source of retirement income, leaving behind the reliance on the age pension. For years, visionaries in the superannuation system had predicted this move toward independence, and it’s clear now that their foresight was spot on. With more and more people contributing to superannuation, it seems the dream of a self-sustained retirement is becoming a reality.
On a regional level, there are some interesting variations. For example, Canberra boasts the highest average super balance of around $224,000, while Darwin sits at the lower end, with an average of $152,000. These differences can be attributed to local income levels, population age, and migration patterns.
The Road Ahead for Superannuation
While there’s still work to be done to address the gap in savings between genders and regions, the overall trend is clear: Australians are making huge strides in securing their financial futures. The combination of higher superannuation guarantees, strong investment returns, and an evolving mindset towards retirement savings means that more Australians are heading toward retirement with a sense of security.
This progress is a win for the superannuation system and proves that it’s on track to meet the needs of future generations. If this momentum continues, we can expect even more positive news in the years to come.
