Australia’s maturing superannuation system delivers higher balances, fewer duplicate accounts and growing female asset share, but gaps and adequacy challenges remain.
Australia’s compulsory superannuation system has continued to mature, with average balances rising, account consolidation improving and more Australians reaching retirement with meaningful savings, according to new research from the Association of Superannuation Funds of Australia (ASFA).
The report revealed the Superannuation Guarantee (SG) has already generated around $1 trillion in additional household savings less than 35 years since inception, with the legislated rise to 12 per cent from July 2025 expected to further strengthen retirement outcomes.
ASFA estimated a 30-year-old today on the median wage, with $30,000 in super, will retire with $610,000, above the $595,000 benchmark needed to fund a comfortable retirement.
For Australians with super, average balances as at June 2023 stand at $192,119 for males and $154,641 for females, with median balances reaching $68,568 and $54,349 respectively.
Strong investment performance has supported growth, with average returns of 9.2 per cent in 2022-23, 9.1 per cent in 2023-24 and early estimates suggesting above 10 per cent for 2024-25 for balanced and growth options.
However, ASFA notes substantial benefit payments — including during COVID-19 — have also influenced balances, particularly for lower-income and younger cohorts.
Around 160,000 accounts were closed as a result of early-release withdrawals, with a further one million left with less than $1,000.
Moreover, the gender gap remains persistent. Women now hold 43.6 per cent of total super assets, up from 41.9 per cent five years ago, but retirement-age disparities continue.
Among those aged 60 to 64, the median balance for women sits at $163,218 compared with $219,773 for men — a 25.7 per cent difference. ASFA said reforms including SG on paid parental leave and the abolition of the $450 monthly threshold are expected to narrow the gap.
Only just over 30 per cent of Australians currently retire with sufficient savings to meet ASFA’s comfortable standard, though this share is expected to rise above 50 per cent by 2050 as the system matures. Couples remain more likely than singles to achieve comfort in retirement.
The system’s efficiency has also improved with the proportion of Australians with only one account has reached 78 per cent, up from 74 per cent in 2020, supported by measures such as stapling and the transfer of inactive low-balance accounts to the Australian Taxation Office. ASFA estimated around two million duplicate accounts remain, suggesting further consolidation opportunities.
Retirement-phase assets continue to expand, with APRA-regulated funds holding $490 billion across 1.35 million retirement accounts as at March 2025. Average retirement balances are around $362,000.
Contrary to claims retirees hoard super, ASFA’s analysis finds most older Australians draw down their savings, with fewer than 10 per cent of people aged over 80 dying with a super balance.
