New research published today by ASFA, the voice of super, shows that while super balances have been growing for most individuals, substantial gender and other disparities in super outcomes remain.
“The increase to 11.5% in July and the upcoming rise to 12% next year, paired with strong investment returns, are game-changers for super fund members. More Australians than ever are set to enjoy a dignified, comfortable retirement, and the future of retirement savings has never looked brighter,” said ASFA CEO, Mary Delahunty.
According ASFA’s research, the latest data on superannuation account balances from 2022 show the average balance for men aged 15 and over is $182,667, with a median balance of $66,159. For women, the average balance was $146,146, with a median balance of $52,075.
Average and median account balances were down slightly in 2022 compared to 2021, due to poor investment returns in the 2021–22 financial year. Investment returns have bounced back since 2022. Average returns in the 2022–23 financial year were 9.2 per cent, and 9.1 per cent in the 2023–24 financial year.
Super balances were also impacted heavily by COVID Early Release payments, with up to 1 million super accounts being left with less than $1,000. The impact of the COVID-19 early release scheme was heavily felt by younger, lower-income workers and single parents, leading to many accounts being drained or closed.
Gender disparities
Gender disparities in super outcomes were present in every age cohort. The median balance in June 2022 for men aged 60–64 was $205,385, compared to $153,685 for women of the same age.
Women held around 43.4 percent of total superannuation assets, with men holding 56.6 percent. The share for women was up from 41.9 percent four years before.
ASFA CEO Mary Delahunty emphasised the importance of proposals aimed at reducing the super gender gap, particularly the payment of super on parental leave.
“Women are more likely than men to have had time out of the workforce following the birth of a child. With the current settings, this time out of the workforce to raise the next generation becomes a financial penalty for women in retirement.”
“The introduction of super payments on paid parental leave will assist to bridge the gender retirement gap but there is still work to be done. Adequate and equitable pay, the valuing of care work, and tax settings all need examining to ensure women aren’t left behind.” Ms Delahunty said.
The report also shows that First Nations individuals and those from Non-English-Speaking Backgrounds (NESB) are similarly disadvantaged, with both groups having lower average balances than the general population.
ASFA continues to advocate for key reforms, including expanding the Low-Income Superannuation Tax Offset (LISTO) and compulsory super contributions for government paid parental leave (with legislation on the latter currently before the Parliament), to address these inequities.
Meanwhile, unwanted multiple accounts have stabilised at around 2 to 2.5 million, thanks to policy reforms like account stapling and transfers of inactive accounts to the ATO.
The report also illustrates the substantial and growing role played by superannuation funds in providing incomes for those who have retired.
“This data shows how much money is being drawn down and used by retirees. It is evidence of the maturing of the sector and the full promise superannuation being realised for more and more Australians. It also shows the great work of superannuation funds and trustees managing a complex environment to deliver strong investment returns and income to Australians as they step out of the workforce.” Ms Delahunty said.
For further information, please contact ASFA Media team: 0451 949 300
About ASFA
ASFA, the voice of super, 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.
