Super news for July 2024

MySuper average balance at $68,000

Average balances in superannuation remain relatively low, with the average member balance in a MySuper product at $68,000 as at the end of March 2024, according to the APRA’s Quarterly Superannuation Industry Publication.

The average member account balance in a choice accumulation product was $126,000, while the average balance was $216,000 in a choice transition-to-retirement product and $355,000 in a choice retirement product.

Of the $2.38 trillion total in superannuation assets, $1,006 billion was in 59 MySuper products, $1,224 billion was in 830 Choice products and $151 billion was in 122 defined benefit products.

Across the age spectrum, the average balance of people younger than 40 was $73,600 or less, while those aged under 25 had average balances of just $7000.

Pre-retirees aged 60 to 64 had average balances of $234,400, while those aged between 70 and 74 had the highest average balances of $282,500.

Member Accounts and Average Balance by Age

Source: APRA

Even the highest average balances are less than half the $595,000 the ASFA Retirement Standard estimates is necessary to fund a comfortable lifestyle. While many retirees may well have sources of income outside super to draw on, the latest figures show the majority of retirees are likely to remain dependent on a full or part Age Pension for some time to come.  

Total super assets up by 11.3%

Total superannuation assets increased by 4.2% over the quarter and 11.3% over the year to be $3.9 trillion, according to the latest quarterly superannuation data from the Australian Prudential Regulation Authority (APRA).

“This increase was led by strong growth in APRA-regulated funds, which increased by over 4.8% over the quarter, driven by strong returns from financial markets,” APRA said.

Of total superannuation assets, $2.7 trillion are in APRA-regulated funds.

Total contributions also increased by 11.3% over the year to $177 billion. Within contributions, employer contributions increased by 12.4% over the year to $133.3 billion as the superannuation guarantee rose from 10.5% to 11% on 1 July 2023, and member contributions increased by 8.2% over the year to $43.7 billion.

Albanese government passes financial advice laws

The Albanese government has passed the first tranche of its financial advice reform laws – Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024.