Living or just surviving

4 min read
4 min read

It is perhaps a bit sad but, along with the Colloquium of Superannuation Researchers, one of the things that I look forward to each year is the release of the annual statistical report of the Household, Income and Labour Dynamics in Australia (HILDA) Survey. It provides a lot of detail about how real Australians live, with a range of information relevant to superannuation.

It is sometimes claimed that the Age Pension alone would provide a substantial income replacement rate for many if not most Australian households. However, the HILDA data show that as at December 2016 average household disposable income was over $91,000 a year, with the median figure just over $79,000. Adjusting these figures to a per person basis, the average is $53,600 a year with a median of $43,900. While housing costs for retirees will generally be lower than for those of working age, the figures indicate that the Age Pension falls well short of what people typically spend. The survey results also indicate that the types of households with the lowest median incomes were elderly couples, elderly single males and elderly single females. Inequality has actually increased in these groups in recent years, but in a good way. Rather than the great bulk of retirees having incomes clustered around the level of the Age Pension, more retirees now have significant superannuation balances and associated private income.

Measurement of the incidence of poverty is not without its conceptual challenges. However, one common method is to measure the percentage of a population group with an income which is below 50 per cent of the median income for the whole population. For Australia this comes out a level just above the amount of the Age Pension. Retiree households, particularly single female retirees, had the highest recorded levels of poverty on this basis. However, with both increases in the Age Pension and in the superannuation balances of retirees, the measured level of poverty amongst retirees has fallen since 2009.

Retiree households are actually less likely than those in the labour force to experience financial stress in the form of not being able to meet basic financial commitments because of a shortage of money. Their lower housing costs on average, as well as more experience with living within means, are possible contributing factors to this outcome. However, retirees that experience financial stress are more likely than other groups to experience such stress in multiple years. Things generally do not get better in a financial sense once a person retires.

The incidence of financial stress tends to rise with being single, being a renter of private housing and, not surprisingly, having a low income.

The HILDA survey also provides information on the rates of self-employment, which is very relevant to the reach of the compulsory superannuation system. While there has been downward trend in the number of the self-employed who employ others, the share of the labour force of the solo self-employed has levelled out at around 8.5 per cent. However, some factors might have masked underlying trends. These include rising rates of labour force participation of women aged 55 and over who historically have not had high rates of self-employment. As well, growth in ‘gig economy’ jobs might be happening at the same time as a decline in other forms of self-employment (as has been happening in the taxi industry). Self-employment also is transitory for some, with around 25 per cent of the self-employed having moved over to be an employee over the three years to 2016.

The HILDA survey also explored levels of financial literacy. The proportion correctly answering all five questions asked on this topic ranged from 24.2 per cent for the 15 to 24 age group to 54.9 per cent for the 55 to 64 age group.

Results show university education is strongly associated with financial literacy, while those who have not completed high school have the lowest levels of financial literacy. Higher income and higher wealth are also associated with greater financial literacy, while government income support receipt is associated with lower financial literacy. Somewhat surprisingly, higher financial literacy does not have much impact on the level of savings that are made. Compulsion is a much more effective way of lifting savings than any education campaign attempting to lift financial literacy.

Having digested all this HILDA data I am now hanging out waiting for my next fixes of APRA and ATO data.

Picture of By Ross Clare

By Ross Clare

director of research

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Derek Thompson

Via live link

Best Selling Author, Podcast Host of 'Plain English'

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Few speakers can match Derek Thompson‘s ability to synthesize mega-trends in society, labor, economics, technology, and politics. Put another way: Derek trawls the data sets and does the forecasting and deep reporting necessary to help us better understand how we live, how we vote, how we spend, and how we work.

In his paradigm-shifting #1 New York Times bestseller, Abundance (co-written with Ezra Klein), this award-winning journalist reveals how our policies and culture have pushed us into a world of scarcity (not enough housing, workers, or progress)—and offers a radical new path towards a world where housing is affordable, energy is plentiful, and innovation flourishes across industries.

He shares a compelling vision of a future where we have more than enough for everybody, and a practical, actionable roadmap for how to get there. It starts with taking more risks, building more expansively, and recognizing that we all have the power to create a world of abundance. “Everything’s utopian until it’s reality,” he says.

Carmen Beverley-Smith

Executive Director - Superannuation, Life & Private Health Insurance, APRA

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Carmen joined APRA in March 2023 and holds the role of Executive Director, Life and Private Health Insurance and Superannuation.  

She has had an esteemed career in financial services, spanning over 25 years. She has held diverse leadership roles at Westpac and Commonwealth Bank of Australia, including across risk, transformation and change, product and portfolio development, and sales and service. 

Prior to joining APRA, she held the role of General Manager, Risk Transformation Delivery Integration at Westpac. This involved leading the group-wide implementation of a suite of solutions to uplift risk management capability and develop data, analytics and reporting. 

Carmen leads with a values-driven approach and a particular interest in developing and mentoring talent. 

She holds a Bachelor of Commerce and Accounting, is a certified Chartered Accountant and a Graduate of the Australian Institute of Company Directors. 

Amy C. Edmondson

Novartis Professor of Leadership and Management, Harvard Business School

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Amy C. Edmondson is the Novartis Professor of Leadership and Management at the Harvard Business School, a chair established to support the study of human interactions that lead to the creation of successful enterprises that contribute to the betterment of society.

Edmondson has been recognized by the biannual Thinkers50 global ranking of management thinkers since 2011, and most recently was ranked #1 in 2021 and 2023; she also received that organization’s Breakthrough Idea Award in 2019, and Talent Award in 2017.  She studies teaming, psychological safety, and organisational learning, and her articles have been published in numerous academic and management outlets, including Administrative Science Quarterly, Academy of Management Journal, Harvard Business Review and California Management Review. Her 2019 book, The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation and Growth (Wiley), has been translated into 15 languages. Her prior books – Teaming: How organizations learn, innovate and compete in the knowledge economy (Jossey-Bass, 2012), Teaming to Innovate (Jossey-Bass, 2013) and Extreme Teaming (Emerald, 2017) – explore teamwork in dynamic organisational environments. In Building the future: Big teaming for audacious innovation (Berrett-Koehler, 2016), she examines the challenges and opportunities of teaming across industries to build smart cities. 

Edmondson’s latest book, Right Kind of Wrong (Atria), builds on her prior work on psychological safety and teaming to provide a framework for thinking about, discussing, and practicing the science of failing well. First published in the US and the UK in September, 2023, the book is due to be translated into 24 additional languages, and was selected for the Financial Times and Schroders Best Business Book of the Year award.

Before her academic career, she was Director of Research at Pecos River Learning Centers, where she worked on transformational change in large companies. In the early 1980s, she worked as Chief Engineer for architect/inventor Buckminster Fuller, and her book A Fuller Explanation: The Synergetic Geometry of R. Buckminster Fuller (Birkauser Boston, 1987) clarifies Fuller’s mathematical contributions for a non-technical audience. Edmondson received her PhD in organisational behavior, AM in psychology, and AB in engineering and design from Harvard University.

 

Daniel Mulino MP

Assistant Treasurer and Minister for Financial Services

Sessions

Keynote 8 – Navigating the energy transition: opportunities, investor strategies and policy needs

Born in Brindisi, Italy, Daniel was a young child when he moved with his family to Australia. He grew up in Canberra and completed his first degrees – arts and law – at the ANU. He then completed a Master of Economics (University of Sydney) and a PhD in economics from Yale.

He lectured at Monash University, was an economic adviser in the Gillard government and was a Victorian MP from 2014 to 2018. As Parliamentary Secretary to the Treasurer of Victoria, Daniel helped deliver major infrastructure projects and developed innovative financing structures for community projects.

In 2018 he was preselected for the new federal seat of Fraser and became its first MP at the 2019 election, re-elected in 2022 and 2025. From 2022 to 2025, Daniel was chair of the House of Representatives’ Standing Economics Committee in which he chaired inquiries; economic dynamism, competition and business formation and insurers’ responses to 2022 major floods claims.

In 2025, he became the Assistant Treasurer and Minister for Financial Services.

In August 2022, Daniel published ‘Safety Net: The Future of Welfare in Australia’, which aims to explore the ways in which an insurance approach can improve the effectiveness of government service delivery.