As I was looking through the ABS releases on financial matters (doesn’t everyone spend their weekends like this?!?), I found a data cube on superannuation. After reviewing the information, I was horrified at the state of retirement savings in our country. The three main points are below:
Percentage of Australians without superannuation
A few glaringly obvious observations can be made:
Half of 15-24 year olds do not have superannuation. This is much more than I expected. Employers not having to pay superannuation for casuals earning less than $450 a month is a partial cause for this (at the time of writing the managers of the country (I cannot call them leaders) are considering phasing this out so that all earnings are subject to superannuation.
15% of people aged 25-34 do not have a superannuation fund. This is much higher than I would have thought.
Nearly 60% of those over 65 do not have a superannuation fund. This is not surprising as superannuation did not exist for most if not all of their working lives.
More females don’t have superannuation funds. This however appears to be improving for the younger generations
2. Median Superannuation Balance of Australians
A few more interesting observations:
Males have 50% more superannuation than females
When approaching retirement, the median superannuation balance is around $130,000
The median balance is around $45,000
3. Percentage of Australians With Multiple Superannuation Funds
This third point is probably the most shocking:
Females are much better than males at having only one superannuation fund
Overall, 14% of Australians with superannuation funds have multiple funds. According to ABS, this equates to 2.65 million people. Of which 630,000 have three or more accounts
Let’s play this out: With a generous assumption that no-one has more than three super funds (incorrect, but will understate the figures), there are around 3.3 million excess superannuation funds. Assuming they are charged a minimum of around $100 a year, this is an extra $330 million dollars Australians are giving to superannuation funds / banks EVERY SINGLE YEAR! Which can be easily fixed by consolidating superannuation funds.
Tell me about your superannuation:
Do you have more than one account?
Are you happy with your balance?
Do you have more or less than the median?
Any thoughts on how the superannuation system can be improved (I have my own ideas here)
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