Australians Hit $172k Average Superannuation Milestone
The average superannuation balance for Australians has now passed $172,000 for the first time, marking a significant milestone in retirement savings, according to the latest data from the Association of Superannuation Funds of Australia, or ASFA. While this is certainly encouraging, the pace at which some Australians are building their retirement nest egg has been described as "glacial," reflecting ongoing disparities in how super is accumulated.
As of June 2023, when the superannuation guarantee had recently increased to 10.5 percent, the average super balance across all Australians stood at $172,834. It has since grown further, now that the guarantee sits at 12 percent. ASFA’s CEO, Mary Delahunty, highlighted that strong investment returns and a maturing superannuation system are expected to continue driving balances higher in the years ahead. She also emphasized that super is a long-term investment built to withstand market volatility, noting that over a 30-year period, funds have delivered average annual returns of around 7.5 percent—even considering crises like the Global Financial Crisis and the COVID-19 downturns.
When looking at Australians nearing retirement, the numbers show substantial growth. For those aged 60 to 64, the average super balance sits at $355,451, rising to nearly $492,198 for people over 75. However, Delahunty pointed out that median balances provide a clearer picture of how most Australians are faring. For instance, people aged 30 to 34 have a median balance of $38,525, while those aged 50 to 54 average $147,857. Even at ages 70 to 74, the median super balance is around $215,009, illustrating both progress and the gaps that remain.
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One of the most persistent disparities is gender-based. Men aged 60 to 64 average about $396,000 in superannuation, whereas women in the same age group average $313,000. Encouragingly, women now hold 43.6 percent of total superannuation assets, up from 41.9 percent five years ago, showing that the gap is slowly narrowing. Factors like career breaks, part-time work, and the gender pay gap remain challenges, but Delahunty described this progress as moving in the right direction.
Geography also plays a role in super balances, reflecting the nature of local workforces. Mining towns like Newcastle, for instance, have higher averages due to well-paid jobs, while retirement destinations such as Victor Harbor see strong balances because many residents have accumulated wealth over long careers. Conversely, younger towns like Darwin often have lower super balances as workers simply haven’t had as much time to build their savings.
The report also highlights a historic shift in retirement funding. Fewer Australians are relying on the age pension, as superannuation increasingly becomes the main source of retirement income. A 30-year-old today with a median wage and around $30,000 in super could retire with $610,000, surpassing the $595,000 benchmark needed for a comfortable retirement, assuming home ownership.
Delahunty urges Australians to engage with their super early. Consolidating accounts, contributing extra—even small weekly amounts—can compound over decades to make a substantial difference. “Don’t wait until you’re 50,” she said. “Even $20 a week in your twenties can add tens of thousands to your retirement.”
While challenges remain, the record average of $172,000 is a milestone that underscores the growing importance of superannuation in securing Australians’ retirement futures.
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