Australians are on the verge of a historic achievement when it comes to retirement savings. The average superannuation balance has now crested $172,000 dollars for the very first time! Given the current economic climate as of June 2023, financial security among citizens is trending upward. That average balance has climbed to $172,834. This increase in superannuation is a very positive step as it helps ensure all Australians have the financial resources to retire with dignity.
Australians aged 60 to 64 have significantly higher superannuation balances, with males holding an average balance of $396,000 and females $313,000. The average combined for this age cohort is $355,451. This means that a lot of people are approaching retirement with a lot of money. Moreover, Australians aged 75 and older have even greater average balances at $492,198.
The median superannuation balance for those aged 30 to 34 is a pathetic $38,525. In comparison, 50-54 year-olds have a much more comfortable median balance of $147,857. For 70 to 74 year-olds, the median balance increases to $215,009. These figures show the dramatic gap in superannuation savings among various age groups.
Time and again, women are cited as making gains in this area. Superannuation assets. As a result, they now account for 43.6 percent of all superannuation assets, an increase from 41.9 percent five years ago. There are still significant barriers to ensuring full equality in retirement savings. Mary Delahunty, a financial expert, pointed out that “the main culprits are career breaks for caring responsibilities, and then women tending to work part-time and then women being paid less.”
A series of policy changes have focused on helping lower-income Australians build their superannuation. Which is precisely why the government last week increased the superannuation offset. It will increase from $500 to $810 for individuals making below $45,000 per year. This small but important change widens the path to eligibility and nudges more people into retirement savings.
Data reveals regional disparities in superannuation balances. Mining boom towns such as Newcastle have average balances of $199,000. This prosperity is due to the prosperous nature of mining jobs in the region. According to Delahunty, “Mining towns like Newcastle have average balances of around $199,000 because mining pays well.” Coastal towns such as Victor Harbor have become a magnet for retirees. It’s their appeal as hot retirement locations that attracts people with accumulated wealth from their working lives.
Darwin’s younger demographic has higher superannuation deficits. Workers in that field usually earn less and therefore have less time to accumulate their savings. “Meanwhile, younger towns like Darwin tend to have lower balances as workers haven’t had as much time to build up their savings,” Delahunty noted.
To get the most out of their super, experts advise Australians to be more proactive in how they manage their superannuation. When accounts are simplified, fees often go down, which can increase overall savings. What’s more, making regular additional contributions can make a big difference to superannuation growth in the long run. Delahunty advised individuals not to delay their contributions: “Don’t wait until you’re 50.”
The Australian superannuation system has shown the ability to create about $1 trillion worth of extra household savings since it started. This increase is imperative not just for their financial security but for the economic security of our entire country.
