Super balances among younger Australians are steadily aligning with recommended targets for a comfortable retirement, according to new projections. The shift follows policy changes and increasing awareness around the importance of long-term retirement planning.
Australia’s superannuation system has reached a turning point, with 30-year-olds now projected to retire with sufficient funds for a comfortable lifestyle. This development marks a milestone for a generation long concerned about their financial future post-retirement.
Rising Super Balances Signal Promising Outlook for New Workforce Entrants
Australia’s superannuation framework, bolstered by recent policy adjustments, is beginning to show signs of delivering its intended results—especially for younger workers. According to the Association of Superannuation Funds of Australia (ASFA), a 30-year-old earning the median income of AUD $75,000 and holding a superannuation balance of $30,000 is now expected to accumulate around $610,000 by age 67. This projection is based on the 2024 increase in the super guarantee to 12 per cent.
ASFA defines a “comfortable retirement” as one that allows retirees to enjoy a good standard of living, including recreational activities and occasional travel. To achieve this, a single homeowner requires an estimated $595,000, while couples are advised to aim for $690,000 in super by age 67, assuming partial access to the government Age Pension.
A breakdown of age-based targets indicates that Australians should hold $66,500 in super at age 30, and $168,000 by age 40, assuming a modest annual salary of $65,000. These benchmarks serve as reference points for individuals planning their retirement finances over time.
Gender Gap and Age Disparities Persist in Actual Super Balances
Despite positive forecasts for some, a notable disparity remains between recommended and actual super balances, particularly across age groups and genders. According to 2023 data from the Australian Taxation Office (ATO), average balances for individuals in their early 30s remain below ASFA’s recommended levels. Males in the 30–34 age bracket hold an average of $55,690, while females average $46,586—both falling short of the $66,500 benchmark.
The discrepancy is more pronounced among older demographics. For example, men aged 60–64 average $395,852, while women in the same group average $313,360, compared to ASFA’s suggested $469,000. This gap highlights the ongoing challenges women face in securing adequate retirement savings, often due to career interruptions and wage inequality.
Experts recommend performing regular superannuation health checks. Financial adviser Ben Nash, founder of Pivot Wealth, encourages individuals to assess their super fund’s performance and investment options. He adds that low-fee, high-return funds are increasingly accessible without the need for a self-managed fund. Additional contributions and ensuring employer compliance are further ways to improve super outcomes, according to MoneySmart and the ATO.
