New report shows growing retirement savings, but gender gap remains
Australia’s retirement savings are on the rise, with the average superannuation balances by age reaching a record $172,834 in mid-2023, according to new data from the Association of Superannuation Funds of Australia (ASFA). The milestone reflects strong investment returns and a maturing superannuation system that’s delivering better outcomes for millions of Australians.
ASFA CEO Mary Delahunty described the results as a sign of “strong, long-term growth,” even amid global market volatility. “Superannuation is designed to weather short-term storms,” she told SBS News, highlighting that super funds have delivered average annual returns of around 7.5% over the past 30 years — even after economic crises.
Breakdown of average superannuation balances by age
The report reveals significant differences in average superannuation balances by age, showcasing how savings build over a lifetime. Australians aged 60 to 64 — nearing retirement — now have an average of $355,451 in their super accounts.
Those aged over 75 hold even higher balances, averaging $492,198. For younger Australians, however, the median figures tell a different story:
- Ages 30–34: median balance of $38,525
- Ages 50–54: median balance of $147,857
- Ages 70–74: median balance of $215,009
These figures show a steady progression in wealth accumulation, but also highlight the long-term nature of superannuation as an investment.
Historic shift in how Australians fund retirement
The ASFA report also identifies a “historic shift” in retirement funding, with fewer people relying solely on the age pension. Instead, superannuation has become the primary income source for many retirees, marking a key success in the nation’s retirement system.
A 30-year-old Australian with $30,000 in super and earning a median wage could expect to retire with around $610,000, surpassing the $595,000 benchmark for a comfortable retirement — assuming home ownership.
“This is a remarkable achievement for the system,” Delahunty said. “Super has generated around $1 trillion in additional household savings that Australians wouldn’t otherwise have.”
Gender gap in super balances narrowing — slowly
Despite the good news, disparities remain. The average superannuation balances by age continue to show a gender gap. Among those aged 60–64, men average $396,000 in retirement savings compared to $313,000 for women.
However, there’s been gradual progress — women now hold 43.6% of total superannuation assets, up from 41.9% five years ago.
“The gap is closing, but at a glacial pace,” Delahunty noted. The main causes include career breaks for caring responsibilities, part-time work, and the gender pay gap.
Upcoming government reforms aim to tackle this imbalance, including superannuation contributions on paid parental leave and an increase in the low-income tax offset from $500 to $810, with expanded eligibility up to a $45,000 income threshold.
Geographic and sectoral differences in super savings
Superannuation balances also vary widely by location and occupation. Mining towns such as Newcastle report average balances near $199,000, driven by higher wages, while coastal areas like Victor Harbor see elevated balances due to retirees relocating with accumulated wealth.
In contrast, younger regions such as Darwin tend to have lower balances, as their populations are still building savings.
Taking control of your super early pays off
Experts emphasize that engagement and early action are key to growing superannuation wealth. Consolidating multiple accounts can reduce fees, while even small, regular contributions can compound significantly over time.
“Don’t wait until you’re 50,” Delahunty advised. “Even $20 a week in your twenties can mean tens of thousands extra at retirement, thanks to compounding returns.”
As Australians celebrate crossing the $172K average superannuation mark, the message is clear: consistent saving, smart investing, and policy reforms can make the future of retirement more secure for all.
Stay ahead with the latest finance and startup trends — visit StartupNews.fyi for breaking updates and insights into the future of money and innovation.
