There has been a steady increase in superannuation balances, more realistically due to compulsory contributions and contribution percentage creep than dazzling performance, but new ABS numbers released by ASFA, the Association of Superannuation Funds in Australia, show that the average account balance for men has climbed 27 per cent since 2003-04, and a startling 69.3 per cent for women. The new number for men is $71,645, up from $56,400, while for women the new number is $40,475 compared with $23,900 previously. And the new average total payouts at retirement are around $198,000 for men and $112,600 for women, whereas in 2005-06 they were $136,000 for men and $63,000 for women.
31.6 per cent of males and 38.5 per cent of women reported having no superannuation at all. Those numbers were not included in the averages shown above. These tended to be classified as self-employed but in many cases were doing normal jobs for smaller employers and being classified as subcontractors.
On the other end of town though, the average SMSF balance is $916,746 with 24.2% of SMSF's under what appears to be the magic $200,000 mark. Clearly there is a trend here. If we consider that most SMSF's have two members, SMSF members have between 6 and 7 times the average balance than traditional super accounts. We commented in recent weeks around what retirees would need to retire comfortably, and all of the above seems to imply that those who have taken control of their retirement savings are serious about preparing for their future.
Do not get complacent, it remains an essential part of managing your fund to focus on how you invest the money, and what investment return you are getting. Make sure to set yourself some goals or targets and perhaps it is a good idea to get some professional investment advice! Good luck and keep contributing! Who knows what support, if any, the government will be able to offer in light of the above low average numbers!
