How does your super balance compare to the average?

The saying goes that comparison is the thief of joy. But in the case of superannuation - which, for some people, is firmly out of sight and out of mind - could comparing balances with similarly-aged Australians provide a useful insight into how their retirement savings are tracking?

A new research paper put out by the Association of Superannuation Funds of Australia (ASFA) using the latest data from the Australian Taxation Office has revealed the typical superannuation balances for both men and women at different stages of their working lives.

Overall, the average balance as of the end of June 2022 was around $182,667 for men and $146,146 for women, while the median balance was roughly $66,159 for men and $52,075 for women.

Of course, as the data in the table below demonstrates, these figures are very much dependent on the age of the account holder given the impact of compounding over time.

Interestingly, because of the relatively poor performances posted in the year to the end of June 2022, the average figures are actually lower than they were the year prior.

However, the positive news according to ASFA is that super fund members have enjoyed average returns of 9.2% (2022-23 financial year) and 9.1% (2023-24 financial year) in the two years since.

Superannuation gender gap persists

As the figures show, the gap between men's and women's retirement savings is stark, even for those who have just entered the workforce.

Depending on the age group in question, women will have 10-40% less super, on average, than men in the same cohort.

There are plenty of reasons behind the gender super gap, but one of the major factors is the time many women are away from paid work.

"Women are more likely than men to have had time out of the workforce following the birth of a child," says Mary Delahunty, ASFA chief executive.

"With the current settings, this time out of the workforce to raise the next generation becomes a financial penalty for women in retirement."

The peak body says that a number of changes are likely to help cut this gap over time though, including the relatively recent scrapping of the $450 monthly threshold for super guarantee contributions and the introduction of contributions on paid parental leave from July 2025.

Peter Hogg, general manager for guidance and advice at Aware Super, says that there are a number of options available to women who are looking to bridge the gap.

"We know woman retire on average, with around $98,000 less than men so it's vital they do find ways to boost their super when they're taking time out of the workforce for other important tasks.

"Aware Super's My Retirement Planner is a great tool to start with, it can show you how you are tracking towards your desired retirement and you can add in up to three career breaks to better plan for time out of the workforce.

"You can also take advantage of personal contributions, spouse contributions and for anyone returning to or moving to a part time basis in the workforce, speak to your super fund as you may be eligible for some government incentives and tax benefits."

How to boost your super balance

Though he concedes that it won't be everyone's number one financial priority, Hogg believes that Australians can benefit from being more engaged with their superannuation.

"Checking in with your super account is a really important part of planning for retirement, but we know that can be hard for people who are still decades away, especially if you're faced with mortgages and the cost of living pressures we're currently seeing," he says.

"By checking a little more often you can better understand how to capitalise on it - whether that's through government incentives, uncovering a tax benefit or even using it to save for a home."

For anyone specifically looking to top up their super balance beyond the contributions they get through their employers though, Hogg says that there are a few possibilities:

• Salary sacrificing: "Topping up your super with before tax contributions is great. It has the benefit of your pay being taxed at 15% rather than up to 47% and you can direct it straight from your regular pay, meaning you may not miss it as you would if it you pay expenses or bills from a savings account or a credit card."
• Voluntary contributions: "Making personal or voluntary contributions at bonus time or perhaps with your tax return can help boost the effects of compounding interest, no matter the size of the contribution."
• Spouse contributions: "Contributions from a spouse are also another option in the tax-benefited world of super, which can also have profound impacts on a lower super balance at retirement, thanks to compound interest."
• Government incentives: "Part-timers or those transitioning to or from the workplace may be eligible for government incentives like co-contributions, where one dollar can be matched up to 50 cents for contributions over $20."

For more information on all things super, including everything from finding lost super to the hidden super perks on offer, check out our superannuation learning hub.

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