Are you beating the average? How much Aussies have in super
Australians are continuing to see their retirement savings swell thanks to a combination of healthy returns and higher employer contributions.
The average superannuation balance reached $182,866 in June 2024, according to the latest figures released by the Australian Taxation Office (ATO).
That's almost exactly $10,000 higher than the average balance recorded the year before.
The latest data doesn't even include the most recent and final - at least, for the tinsertime being - increase to the superannuation guarantee, which rose from 11.5% to 12% in July last year.
Given this, Mary Delahunty, chief executive of the Association of Superannuation Funds of Australia (ASFA), suggests that the full benefit of compulsory superannuation is yet to be seen.
"As more people reach retirement having had the benefit of double-digit compulsory super for most of their lives, we'll see the system come to full maturity, with most retirees living on an income well above what Centrelink can sustainably provide as our population ages."
How super balances compare by age and gender
As you would expect, the average superannuation balance held by both men and women also ticked up by roughly $10,000, according to an analysis of the ATO data by ASFA.
Taking in all age groups, the average balance for men was $202,644 (up from $192,119) as of June 2024, while for women it was $164,206 (up from $154,641).
Encouragingly, the median amount of money being held in superannuation also rose across the board.
Because a small number of very high balances can skew the average (accounts with nothing in them were excluded from the analysis), the median is often viewed as a more realistic figure to look at.
Fewer retirees depending on pension
Ever-growing superannuation savings also appear to be having an impact on the number of Australians who rely on the age pension to help fund their retirement.
Back in 2012 more than two-thirds (70%) of Australians aged 65 or over received either a full or part pension. But according to ASFA research, that has since shrunk to around 56% of people.
"Every time we see people taking one of those steps [transitioning off the full or part pension], it means they are retiring with more money to spend than the age pension alone would have given them, and it means a smaller burden on the federal budget," Delahunty says.
And if the current superannuation settings remain in place, more younger Australians are likely to retire in the future with greater financial independence.
ASFA estimates that a 30 year old earning the median wage with $30,000 currently in their super will retire with a balance of around $620,000 (in today's dollars) - on par with the $630,000 that the peak body says is needed to fund a comfortable retirement.
"Few people aspire to live only on the age pension, which provides a level of income that puts someone just above relative poverty," Delahunty says.
"Super is the thing that helps people achieve a more comfortable lifestyle in retirement, where they might have private health insurance, for example, or where they can go out to eat and use the aircon in summer without financial worry."
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