Media Release

Compulsory superannuation is delivering, but more needs to be done for women and the low paid

18 March 2022

Compulsory superannuation is delivering, but more needs to be done for women and the low paid

The Association of Superannuation Funds of Australia (ASFA) today released a new research paper which illustrates the progress being made in improving retirement savings due to compulsory superannuation.

“While there is still much work to be done, pleasingly we are starting to move in the right direction in terms of closing the gap between the retirement savings of men and women,” said ASFA CEO, Dr Martin Fahy.

Over the two years to June 2019 the average balance for males grew by 10.8 per cent, while for females it grew by 12.0 per cent. Females held around 42.5 per cent of total superannuation assets, up from 41.9 per cent two years before.

For individuals aged 60 to 64 in June 2019 the average balance for males was $359,870 with a median of $178,800 and for females the average was $289,180 with a median of $137,050. The retirement savings gap based on the median figures is 23.4 per cent. This is well down on the 47 per cent gap figure cited by many commentators, which is now out of date as it applied to those aged 55 to 64 in Australian Bureau of Statistics (ABS) figures for 2013-14.

However, the median figures are still well short of the amounts needed to support a comfortable standard of living in retirement.

“While it will be more than 30 years before most individuals in retirement will have had the full benefit of the Superannuation Guarantee, the proportion of new retirees who are fully self-funded has been increasing.

“Moving compulsory contributions to 12 per cent, as is legislated, together with other targeted policy measures is necessary to reduce the retirement savings gap for many Australians,” said Dr Fahy.

Taking time out of the paid labour force for family responsibilities has a big impact on the superannuation balances of women at retirement. Analysis in the paper indicates that taking a year off for each of two children can lead to 10 per cent less in superannuation at the time of retirement.

ASFA analysis also shows that the introduction of a $5,000 Superannuation Baby Bonus together with payment of the Superannuation Guarantee on paid parental leave would largely eliminate this deficit.

The paper also contains data on the superannuation of Aboriginal and Torres Strait Islanders and of persons who were born in non-English speaking countries. On average their super balances are lower than for the population as a whole. Targeted measures, such as extension of the Low Income Superannuation Tax Offset, will assist these groups and low income earners more generally.


For further information, please contact:
ASFA Media team, 0451 949 300.


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.

   

 

 

Derek Thompson

Bestselling author, podcast host & founder

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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

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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

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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

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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.