The average super balance has hit a new record high and while the gender super gap remains, it appears to be closing. (Source: AAP/Getty)
Australians have more savings than ever stashed in their superannuation for retirement. New research found average super balances have hit a record high of $172,834, with the financial nest egg increasingly becoming the main source of retirement income for Aussies as we undergo a “historical shift”.
The Association of Superannuation Funds of Australia (ASFA) found that among the nearly 18 million superannuation account holders aged 15 and over, males have an average balance of $192,119, while females have an average of $154,641. This is based on the most recent data from the Australian Taxation Office from June 2023, with both figures up from the previous year.
For those entering retirement, the average balance for those aged 65 to 69 is now $420,934. The average for males in the age bracket was $448,518, while for females it was $392,274.
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ASFA CEO Mary Delahunty said the findings were “great news” for Aussies.
“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,” she said.
While the gender super gap persists, the research found it was closing with recently announced changes to the Low-Income Superannuation Tax Offset (LISTO) expected to reduce the gap further, along with changes like payment of super on paid parental leave.
The government will increase the LISTO income threshold from $37,000 to $45,000, along with upping the maximum payment from $500 to $810 from July 1, 2027.
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Here is the average super balance of men and women at different ages, based on ATO data.
It’s worth noting these are average balances, not median balances, which are lower. Female balances are also consistently lower than those of males.
Age
Male
Female
Under 18
$7,687
$4,699
18 to 24
$9,062
$8,163
25 to 29
$27,021
$24,821
30 to 34
$55,690
$46,586
35 to 39
$96,122
$76,020
40 to 44
$140,680
$109,209
45 to 49
$193,501
$147,146
50 to 54
$254,071
$190,175
55 to 59
$319,743
$242,945
60 to 64
$395,852
$313,360
65 to 69
$448,518
$392,274
70 to 74
$501,785
$449,540
75 or more
$525,627
$454,333
ASFA found three in 10 Aussies were currently retiring with enough savings to meet its comfortable retirement standard of $595,000 for singles.
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However, it estimates that a 30-year-old today with $30,000 in their super, earning the median wage would retire with $610,000 in super in the future, above the amount needed, due to the recent 12 per cent guarantee increase.
ASFA also analysed ABS data and found that the share of retirees primarily relying on government payments had declined since 2020-21, while the number of retirees whose main income source was super or workers’ compensation had increased.
As more Aussies reach retirement having accumulated super across their working lives, this upward trend is expected to continue.
The super group also analysed super balances across Australia and found there was a major variation among big cities and towns.
Across the country, Canberra had the highest average super balance per person at $223,585, followed by retiree hotspots Victor Harbor and Goolwa in South Australia at $199,072, and Newcastle in NSW at $198,579.
Darwin had the lowest of the capitals at $152,366, while Kalgoorlie-Boulder in WA’s Goldfields-Esperance region had the lowest overall at around $109,268.
ASFA said this was due to differences in demographics, specifically how old or young the population is on average, along with income levels.
Here were the average balances across the capitals:
Sydney $168,923
Melbourne $167,468
Brisbane $178,475
Perth $165,031
Adelaide $174,550
Hobart $173,487
Canberra $223,585
Darwin $152,366
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