The average amount saved for retirement is increasing over time, largely due to compulsory savings via the superannuation guarantee system.
However, there are still inadequacies with this system, such as disadvantages for women who typically earn less and have fewer working years compared to their male counterparts.
Another example is self-employed people in Australia, for which there is no mandatory requirement to contribute to super.
So, what are the average retirement savings in Australia?
Average Retirement Savings By Age: Are You on Track?
The average amount saved for retirement for each age group is shown in the table below. You will see there are variances, not only by age, but also between males and females.
| Age | Male | Female |
|---|---|---|
| Under 18 | $11,710 | $7,455 |
| 18 to 24 years | $8,148 | $7,328 |
| 25 to 29 years | $25,981 | $23,429 |
| 30 to 34 years | $56,344 | $46,289 |
| 35 to 39 years | $95,937 | $75,785 |
| 40 to 44 years | $139,431 | $107,538 |
| 45 to 49 years | $190,716 | $142,037 |
| 50 to 54 years | $246,955 | $182,167 |
| 55 to 59 years | $316,457 | $236,530 |
| 60 to 64 years | $402,838 | $318,203 |
| 65-69 years | $453,075 | $403,038 |
| 70 to 74 years | $509,059 | $451,523 |
| 75 years and older | $507,556 | $436,865 |
How does your super compare with the average? Where do you stand and is it enough?
Related Article: How Much Super Do I Need to Retire?
Importantly, average retirement savings do not truly represent where the ordinary Australian stands. A much more representative figure is the median retirement savings amount.
Average Retirement Savings vs Median Retirement Savings
There is a significant difference between the average retirement savings and the median retirement savings for each age group in Australia. Average retirement savings tend to inflate a more realistic picture.
To be clear, the average is defined as the total amount held within superannuation, divided by the number of account balances. Whereas, the median is defined as the middle value – specifically, half of the total number of account balances have a higher value and half of the account balances have a lower number.
The median figures better represent super balances in Australia, because unlike the average figures, the median are not skewed by exceptionally high or low outliers.
The chart and table below illustrates both median and average Australian account balances, as a result of data and statistics collated by the Australian Tax Office (ATO).
| Age | Male (Average) | Male (Median) | Female (Average) | Female (Median) |
|---|---|---|---|---|
| Under 18 | $11,710 | $307 | $7,455 | $187 |
| 18 to 24 years | $8,148 | $4,198 | $7,328 | $3,899 |
| 25 to 29 years | $25,981 | $17,243 | $23,429 | $17,528 |
| 30 to 34 years | $56,344 | $41,849 | $46,289 | $35,716 |
| 35 to 39 years | $95,937 | $74,062 | $75,785 | $57,401 |
| 40 to 44 years | $139,431 | $106,771 | $107,538 | $77,644 |
| 45 to 49 years | $190,716 | $139,850 | $142,037 | $96,575 |
| 50 to 54 years | $246,955 | $167,002 | $182,167 | $112,943 |
| 55 to 59 years | $316,457 | $191,263 | $236,530 | $130,714 |
| 60 to 64 years | $402,838 | $211,996 | $318,203 | $158,806 |
| 65-69 years | $453,075 | $213,986 | $403,038 | $201,233 |
| 70 to 74 years | $509,059 | $216,564 | $451,523 | $212,462 |
| 75 years and older | $507,556 | $174,179 | $436,865 | $168,973 |
Read Next: How Much Does a Single Person Need to Retire?
Average Retirement Savings at Age 65
The average retirement savings at 65 in Australia is around $430,000 for a male and $360,000 for a female.
Average Retirement Savings by Age 60
The average retirement savings at 60 in Australia is around $360,000 for a male and $275,000 for a female.
Average Retirement Savings at Age 55
The average retirement savings at 55 in Australia is around $280,000 for a male and $210,000 for a female.
Average Retirement Savings by Age 50
The average retirement savings at 50 in Australia is around $220,000 for a male and $160,000 for a female.
What is the Average Retirement Savings for a Married Couple?
The average retirement savings at retirement for a married couple will depend on the ages of the married couple upon retirement. However, if we were to assume the couple were both aged 60 at retirement, then the average retirement savings for a married couple would be approximately $635,000, combined. If the couple retired at 65, it would be $790,000, combined.
Read More: How Much Does a Couple Need to Retire?
Ways to Increase Retirement Savings
Some ways to increase retirement savings include:
- Become an employee to receive superannuation guarantee contributions
- Arrange with your employer to salary sacrifice part of your wage into superannuation
- Make personal deductible contributions to super
- Make personal after-tax contributions to super
- Change your super investment option in an attempt to achieve higher returns
It’s always best to seek personal financial advice prior to making any additional contributions to super, or changing investment options, to ensure it is suitable for your needs.
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