17 June 2022
Regional gap in superannuation balances revealed in new analysis
Inaugural Check Your Super Day to take place on 30th June
The Association of Superannuation Funds of Australia (ASFA) has today released an analysis of superannuation balances across states and territories.
The analysis revealed that the average Australian has $147,425 in their superannuation.
The average super balance varied from a high of $205,369 in the ACT to a low of $107,677 in the Northern Territory.
Table 1: Average Balance by State and Territory
| ACT | $205,369 |
|---|---|
| Victoria | $151,679 |
| New South Wales | $149,063 |
| South Australia | $147,148 |
| Queensland | $142,345 |
| Tasmania | $139,719 |
| Western Australia | $137,152 |
| Northern Territory | $107,677 |
Check Your Super Day – 30 June
Speaking on the release of the analysis, ASFA’s CEO Dr Martin Fahy encouraged Australians to check their super balance in advance of the end of financial year and consider if the balance is where it needs to be to meet retirement goals, in the long-term.
“We encourage people to check their super on or before June 30th by using a retirement tool such as our SuperGuru Retirement Tracker to get a sense of how they are tracking towards their goals in retirement,” said Dr Fahy.
Long-term investment
When assessing your balance, it’s important to remember that superannuation is a decades-long proposition and returns should be analysed over 10 year periods.
“We are facing strong economic headwinds in the coming years with higher interest rates, slower growth and global volatility. As the global economy slows down, so will returns, but the diversified long-term investment approach adopted by superannuation funds will allow members to weather the coming storm and continue to generate strong returns over the decades-long journey to retirement.
“As we look ahead to uncertainty in global markets, the great thing about superannuation is that professional fund managers spread your investment across a range of asset classes. As some asset classes fall, others rise and this helps protect your superannuation from financial shocks.
“Over the past 10 years, superannuation funds have returned 8.5% per annum,” said Dr Fahy.
Changes on 1 July
On 1st July there will be several changes coming into effect relating to superannuation which are a great step toward helping Australians enjoy a comfortable and dignified retirement.
“The increase of the Superannuation Guarantee to 10.5%, the removal of the minimum $450 earnings threshold for payment of super, and changes in the downsizer contribution policy which allows more people to use the proceeds from selling the family home, will all assist more people to boost their super.”
In the lead up to Check Your Super Day, ASFA has also compiled its top three tips for Australians to give their super an extra boost and ensure it is aligned with their goals:
- Check your super balance by contacting your fund or visiting MyGov
- Consolidate multiple superannuation accounts
- Check the asset allocation to ensure this aligns with your risk appetite
“These steps can change the trajectory of how a super balance is tracking and make the difference between living in retirement modestly or comfortably”, concluded Dr Fahy.
ASFA offers a range of free resources for Australians to take ownership of their future financial wellbeing, including Super Guru’s Retirement Tracker where Australians can enter their information, such as age, gender and income, to understand what kind of retirement then afford.
ASFA’s Super Guru Super Balance Detective will show Australians how much super they should have accumulated based on their year of birth.
ASFA’s Super Guru Small Changes, Bigs Savings tools help Australians calculate how much they could potentially add to their retirement savings through the lens of everyday extras.
For further information and media enquiries, please contact:
Holly Clark, BlueChip Communication. 0452 069 936
Marie Dowling, BlueChip Communication, 0478 151 088
About ASFA
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.
About the ASFA Retirement Standard
Since 2004 the ASFA Retirement Standard has served as a retirement companion for Australians, providing a reliable retirement savings guide by benchmarking the annual budget needed to fund either a comfortable or modest standard of living in the post-work years. It is updated quarterly to reflect inflation, reviewed regularly to reflect changes in lifestyle, and provides detailed budgets of what single people and couples would need to spend to support their chosen lifestyle.
More information
Costs and summary figures can be accessed via the ASFA website. Australians can find out more about superannuation on the independent Super Guru website.
