At a glance…
- Superannuation has changed a lot in the last three decades; in this article, we explain the super state of play
- 18 million Australians now have retirement savings, and not everyone has the advice they need to succeed
- Editor of Money Matters, Effie Zahos, has provided an overview with everything you need to know
Think back for a moment to 1992. It was the year one- and two-cent coins began fading from circulation, and Billy Ray Cyrus was slaying the charts with ‘Achy Breaky Heart’.
In that same year, another event took place that would reshape the wealth and wellbeing of working Australians – the introduction of compulsory employer-paid super.
Back in 1992, the Superannuation Guarantee caused quite a kerfuffle when employers were called on to make 3% contributions to their employees’ super funds. But what a difference it has made.
In 1992, Australians’ super savings totalled just $148 billion, and less than one in three private-sector workers had super savings.
Fast-forward to 2026, and employers are required to make contributions worth 12% of their employees’ ordinary time earnings, and our national super savings have grown to $4.5 trillion. It’s quite incredible to think about.
Around 18 million of us – close to four in five Australians – now have retirement savings, one of the highest rates of coverage in the world.
These are all big numbers. So, what is their impact and what do they mean on a personal level?
“Importantly, superannuation helps women enter retirement with money of their own”
Let’s break it down, starting with the changing landscape for women.
Women need savings in their own name
Perhaps one of the most important developments since compulsory super was introduced is that it has helped women build retirement savings in their own name — and enjoy their golden years on their own terms.
That has been driven by social reality. The expression “a man is not a financial plan” has never resonated more; the Australian Bureau of Statistics (ABS) has estimated that more than one in four Aussie women will never get married.
Among those who do, marriage may not last forever. We’re also seeing the rise of ‘silver separators’ – couples aged 50-plus who are splitting up and going their own ways later in life. More than that, couples who’ve been married for 20 years or more now account for more than one in four divorces.
For all of these women, super can play a key role in providing financial support in retirement — support that was far more limited for previous generations.
Ten years ago, in 2016, women aged 60-64 had average super savings of $214,897. Today, the average is closer to $313,000 – and this is based on 2023 figures (the most recent available), so women are likely to have more today.
A near-$100,000 increase in women’s super savings over the last decade is impressive. Importantly, it is helping more women enter retirement with money of their own, greater choice and a stronger safety net.
The gender super gap is narrowing
For a variety of reasons, including lower pay and time taken out of the workforce to raise children, women still typically retire with less super than men.
But the gap is closing, and a series of reforms over the years has helped it happen. The end result is a system that is gradually becoming fairer. Low-fee accounts, super on paid parental leave, super for low-income and casual workers, stapled accounts and stronger visibility of super in divorce settlements are all helping women hold on to more of what is theirs.
This article originally appeared in Money Matters by The Australian Women’s Weekly. Purchase here.
Information is correct at the time of writing. Any advice provided is general in nature and does not take your personal circumstances into consideration. Readers should seek their own financial advice.
