Australian retirees are relying on Centrelink less than ever before, as average super balances hit new highs according to ASFA research released today. Around 56 per cent of people aged 65+ now receive a full or part Age Pension, down from 70 per cent in 2012.
ASFA’s Update on Superannuation Account Balances: 2026 Edition shows the mean super balance for people aged 15 and over has reached $202,644 for men and $164,206 for women. The figures for both men and women have increased by more than $10,000 over the last year.
The super balances most important when thinking about retirement outcomes are those held by Australians in the years at the end of their working lives. Across all 1.32 million Australians aged 60 to 64 with super, the mean balance is $371,379 and the median is $203,326. For men in this age group, the mean is $413,700 and the median $236,126. For women, the mean is $327,440 and the median $174,655.
ASFA CEO Mary Delahunty said the figures show a system that has started to reach maturity in terms of the benefits it delivers to Australians in retirement.
“Growing account balances are the product of two things: the fact that the superannuation guarantee has been increasing, and the strong investment returns that super funds have delivered to their members over a sustained period of time,” Ms Delahunty said.
No Australian retiring today received 12 per cent compulsory super for most of their career. The superannuation guarantee was paused at 9 per cent between 2002 and 2013, and only reached its full 12 per cent rate last year.
“As more people reach retirement having had the benefit of double-digit compulsory super for most of their lives, we’ll see the system come to full maturity, with most retirees living on an income well above what Centrelink can sustainably provide as our population ages,” Ms Delahunty said.
Declining Age Pension reliance
Independent projections used in Treasury’s Retirement Income Review Final Report indicate that the proportion of people over 67 receiving either the full or part Age Pension will fall to around 50 per cent by 2059. The largest fall will be in the proportion of people receiving the full Age Pension.
“We have never expected to see most of the population going from receiving the full public pension to no pension overnight. The system maturing means that we are constantly seeing Australians taking a step up, either from the full pension to a part pension, or from a part pension to being able to fully fund their own retirement through their savings,” Ms Delahunty said.
“Every time we see people taking one of those steps, it means they are retiring with more money to spend than the Age Pension alone would have given them, and it means a smaller burden on the federal budget,” Ms Delahunty said.
Australia has one of the lowest public pension expenditures among the OECD countries, spending 2.3 per cent of GDP compared to an average of around 9 per cent. This is projected to fall to 2 per cent of GDP over the next 40 years, even as the population aged 65 and above grows substantially. Public expenditure on pensions is projected to rise in most other OECD countries.
Age Pension is a bare minimum, not an aspiration
Currently, the maximum Age Pension available to a single person is just over $600 a week.
The relative poverty line for a single adult as measured by ACOSS and UNSW is $584 a week before housing costs.
The ASFA Retirement Standard estimates the cost of a comfortable retirement as $55,923 per year, or around $1,071 a week.
“Few people aspire to live only on the Age Pension, which provides a level of income that puts someone just above relative poverty. Super is the thing that helps people achieve a more comfortable lifestyle in retirement, where they might have private health insurance, for example, or where they can go out to eat and use the aircon in summer without financial worry.
“That’s the kind of life that those of us who believe in super want retirees to have,” Ms Delahunty said.
ASFA estimates that since the superannuation guarantee reached 12 per cent, a 30 year old worker on the median wage with a modest balance of $30,000 is on track to retire with around $620,000 in today’s dollars, leaving them able to achieve a comfortable retirement lifestyle.
The full Update on Superannuation Account Balances: 2026 edition paper is available here.
Ends
Members of the media may contact:
Scott Roberts
Media and Content Lead
sroberts@superannuation.asn.au
0451 949 300
About ASFA
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry, and the only industry body that represents all parts of the APRA-regulated system.
Our more than 100 members include retail, industry, corporate and public sector funds and their service providers. For over sixty years, ASFA has been the voice of super, advocating for a dignified retirement for all Australians. Through research, advocacy and collaboration, ASFA promotes efficiency, sustainability and trust in Australia’s world-class retirement income system.