Aussie Super Surpasses a Monumental Mark: A Triumph for Retirement Savings
Australians are celebrating a remarkable achievement in the realm of retirement savings. The superannuation sector has collectively surpassed the $1 trillion mark, marking a significant milestone in the country's financial landscape. This milestone signifies that every working Australian now has a share of this substantial amount, which would otherwise be inaccessible to them.
The Association of Superannuation Funds of Australia (ASFA) reports that the total assets, encompassing contributions from employers and individual Australians, reached an impressive $4.1 trillion in March 2025. This substantial figure highlights the power of collective savings and the positive impact it has on retirement planning.
On average, Australians now hold over $172,000 in superannuation, with those aged 65-69 boasting an average of $420,936. The superannuation guarantee, which has increased from 9.5% to 12% in the last five years, is a key driver of this success. This increase in the superannuation guarantee has not only boosted savings but also contributed to the overall strength of the industry.
Mary Delahunty, ASFA's chief executive, expressed optimism about the growing superannuation balances, describing it as "great news." She emphasized that the higher superannuation guarantee, combined with strong investment returns from super funds, has resulted in Australians having more retirement savings than ever before.
The impact of this achievement is particularly evident for those planning their retirement. A 30-year-old median wage earner with $30,000 in superannuation savings is projected to retire with an impressive $610,000, surpassing the $595,000 threshold for a comfortable retirement. However, it's important to note that this figure assumes homeownership and no career breaks, which may not be applicable to everyone.
Delahunty also highlighted a positive trend: fewer Australians are relying on the age pension as their primary source of retirement income. Superannuation is increasingly becoming the main pillar of retirement planning, marking a significant shift in how Australians approach their retirement years. This transformation is a testament to the foresight of the superannuation system's architects, who envisioned a future where Australians would have substantial retirement savings, reducing the reliance on taxpayer-funded support even as the population ages.
