Retirement
Super gender gap shrinks, but ASFA says more work is needed
The average super balance for women has grown at a faster pace than for men.
Super gender gap shrinks, but ASFA says more work is needed
A new report has revealed that the average superannuation balance for females grew by 12.0 per cent in the two years to June 2019, compared to an increase of 10.8 per cent for males.
The Association of Superannuation Funds of Australia (ASFA) found that the median super balance for Aussies aged between 60 and 64 was $137,050 for females and $178,800 for males as of June 2019.
Although still representing a gap of 23.4 per cent, ASFA said the difference in retirement savings between genders was well below the 47 per cent gap identified by the Australian Bureau of Statistics (ABS) in 2013-14 for individuals aged between 55 and 64.
“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.
The overall average super balance was $146,420 for females and $162,280 for males in June 2019, rising to $289,180 for females and $359,870 for males aged 60 to 64.
Females held 42.5 per cent of total super assets, up from 41.9 per cent a year earlier.
ASFA said that despite the improvements, the median super balance of Aussies remained below the amount needed to support a comfortable standard of living during 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,” Dr Fahy said.
“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.”
One major contributing factor to the super gender gap highlighted by ASFA was the time out of the paid labour force associated with having a baby. Taking two year-long breaks can result in a nearly 10 per cent reduction in the super balance of women after reaching retirement age.
To combat the significant impact of having a child on super balances, ASFA repeated its calls to introduce a $5,000 super baby bonus and require payment of the super guarantee during paid parental leave.
As of 2019, about 320,000 Aussies had a super balance over $1 million according to ASFA, including 80,000 with more than $2 million and 11,000 with over $5 million.
While Aussies aged 60 and above mostly accounted for the high super balances, ASFA said that 370 individuals below the age of 30 had a super balance of $2 million or more.
The report also found that Indigenous Australians and individuals born in non-English speaking countries had significantly lower super balances than the overall population.
RELATED ARTICLES
Superannuation
Aware Super elevates tech leadership with strategic appointment of Richard Exton
Aware Super, one of Australia's largest industry super funds, has announced a pivotal appointment to its executive team, underscoring the growing importance of technology, data, and artificial ...Read more
Superannuation
Rest appoints Marina Pasika as interim head of private markets
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Marina Pasika as the Interim Head of Private Markets. This decision comes as the fund embarks ...Read more
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
Superannuation
Super performance test faces a fork balancing member value productive investment and regulatory trust
APRA’s latest superannuation performance test results have reignited a high‑stakes debate: does the test optimise member value or unintentionally curb long‑term investment in housing, infrastructure ...Read more
Superannuation
Aware Super unveils innovative digital tool to boost retirees' financial confidence
Aware Super has unveiled a groundbreaking digital advice tool, Retirement Manager, designed to empower retirees by addressing their most pressing financial concerns. Developed in collaboration with ...Read more
Superannuation
APRA's super shake-up: Balancing accountability and innovation in the next round
Australia’s performance test has forced long-overdue transparency in super and accelerated consolidation. But as the regime broadens, its blunt edges are colliding with investment complexity, ESG ...Read more
Superannuation
Aware Super elevates tech leadership with strategic appointment of Richard Exton
Aware Super, one of Australia's largest industry super funds, has announced a pivotal appointment to its executive team, underscoring the growing importance of technology, data, and artificial ...Read more
Superannuation
Rest appoints Marina Pasika as interim head of private markets
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Marina Pasika as the Interim Head of Private Markets. This decision comes as the fund embarks ...Read more
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
Superannuation
Super performance test faces a fork balancing member value productive investment and regulatory trust
APRA’s latest superannuation performance test results have reignited a high‑stakes debate: does the test optimise member value or unintentionally curb long‑term investment in housing, infrastructure ...Read more
Superannuation
Aware Super unveils innovative digital tool to boost retirees' financial confidence
Aware Super has unveiled a groundbreaking digital advice tool, Retirement Manager, designed to empower retirees by addressing their most pressing financial concerns. Developed in collaboration with ...Read more
Superannuation
APRA's super shake-up: Balancing accountability and innovation in the next round
Australia’s performance test has forced long-overdue transparency in super and accelerated consolidation. But as the regime broadens, its blunt edges are colliding with investment complexity, ESG ...Read more
