Australians’ superannuation savings have surpassed a historic $1 trillion, with total assets in the sector now exceeding $4.1 trillion as of March 2025. The growing pool of retirement savings marks a major milestone in Australia’s superannuation journey, reflecting not only the expansion of the sector but also a broader shift in how Australians approach retirement funding.
This rise comes at a time when superannuation is becoming an increasingly crucial pillar of financial security in retirement. With strong investment returns and a higher superannuation guarantee rate, Australians are building more substantial nest eggs. But while the numbers are impressive, what does this shift mean for the future of retirement in Australia?
Superannuation Balances See Significant Growth
According to the Association of Superannuation Funds of Australia (ASFA), the average Australian now holds a superannuation balance of just over $172,000. For those aged 65-69, this figure is significantly higher, with an average of $420,936. These figures reflect a combination of increased contributions, including both employer payments and individual savings, as well as strong market performance.
A major driver behind this growth is the increase in the superannuation guarantee (SG), which has steadily risen from 9.5% to 12% over the past five years. The SG is the mandatory contribution employers must make to their employees’ superannuation funds, and this boost is playing a critical role in growing Australians’ retirement savings. As ASFA CEO Mary Delahunty explains, “The increase in the superannuation guarantee to 12 per cent combined with strong investment returns from super funds mean Australians have more savings than ever put away for retirement,”
This shift in savings is helping Australians build a more robust financial foundation for their retirement years. A median wage earner aged 30, for instance, could expect to retire with around $610,000 in their superannuation account, assuming they own their home and have no major career breaks. This amount exceeds the $595,000 deemed necessary for a comfortable retirement, according to ASFA.
Superannuation: The New Foundation for Retirement
The growing reliance on superannuation as the primary source of retirement income represents a significant shift from the past. Fewer Australians are now depending on the age pension as their main financial support in retirement, and instead, they are turning to their superannuation funds to provide long-term financial security.
This trend reflects a broader societal shift towards self-funded retirement. According to Delahunty, this change aligns with the vision of superannuation’s architects, who foresaw a future where Australians would not rely on taxpayer-funded pensions. As the population ages, superannuation’s increasing role is expected to be a stabilising factor for Australia’s retirement system, reducing the burden on government resources.
