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6 Apr 2021

Retirement: The Super Gap

We regularly get asked how much money should I have already saved in superannuation.

If you look at the statistics, the average Australian superannuation balance comes up short.

There is a gap between male and female average superannuation balances and there is also a gap between the current and recommended average superannuation balance.

Why do women have a smaller average superannuation balance because children get in the way?

Women’s income is heavily impacted by the fact that they are the only sex that can give birth and woman often continue on to become the primary care giver which usually leaves them with less time for full-time work.

Significantly reduced hours of full-time work over years and in some cases decades causes this gap because part-time and casual work pays less income and has less opportunity for increasing income.

On the question of why are the current average superannuation balances below the recommended for both men and women?

Again, because life gets in the way.

Rather than increasing our saving towards retirement we allocate money towards entertainment, hobbies, vehicles, holidays, wedding, property, children, debt repayment and more.

It is always easy to find a reason to spend money.

Spending money is a normal behaviour and also necessary and that is why increasing the superannuation guarantee contribution from the current 9.50% to an eventual 12.0% per annum on the 1st July 2025 is good.

It will force increase the average superannuation balance.

Click for chart.


At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

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