Edward Watkins | York Heritage Capital
21 January 2025
The figures illustrate our current situation. Your future financial status hinges on your next investment.
If you are in your 40s with approximately $100,000 in superannuation, you are nearly at the average mark.
Edward Watkins from York Heritage Capital says, men aged 35–44 possess an average balance of around $107,700, while women in the same age group average $76,900. By the time individuals reach their mid-50s, these averages increase to about $240,000 and $180,000, respectively.
At first glance, this appears to indicate progress. Superannuation balances have been consistently increasing over the decades, reflecting higher mandatory contributions, robust market performance, and improved financial literacy.
However, when considering the implications of a longer lifespan and escalating living expenses, these figures present a more concerning reality, watkins says.
The disparity between our current status and our necessary goals
Australians are living longer than ever before. Current ABS data suggests that the average 65-year-old can anticipate living well into their 80s. This implies that superannuation must sustain individuals for 20 to 30 years or more, covering not only everyday expenses but also healthcare, housing, and lifestyle costs.
The Association of Superannuation Funds of Australia (ASFA) estimates that a “comfortable” retirement necessitates a balance of approximately $690,000 for couples or $595,000 for singles. This amount significantly exceeds the current balances of most Australians.
The truth is that the median balance (the midpoint rather than the mean/average) is considerably lower.
Numerous individuals have taken breaks from the workforce, encountered irregular contributions, or simply began saving later in life. Additionally, women, who generally earn less and tend to take more career breaks, continue to experience a substantial superannuation gap.
The rise of self-managed super
One group that bucks the trend is SMSF members. York Heritage Capital says that the average assets per self-managed fund members now exceed $880,000, with nearly 600,000 funds operating across the country.
While SMSFs are not for everyone, they reflect a broader truth: when Australians take ownership of their investing journey, outcomes can improve. That might mean setting up an SMSF, or it might simply mean making voluntary contributions, reviewing investment options, and staying engaged.
The key is active participation: not leaving your financial future on autopilot.
Why optimism still wins
It’s easy to feel overwhelmed by the numbers. However, as Edward Watkins likes to remind us, pessimists sound smart — optimists win. History has shown that even through world wars, recessions, and market crashes, the long-term trajectory of wealth and living standards has been up.
That same lesson applies to super. The compounding effect of consistent investing over decades is extraordinary.
For example, someone contributing an extra $10 a day — about the cost of a trip to the local cafe — and earning 9% annually could add more than $370,000 to their retirement balance over 30 years. The power isn’t in the dollar amount, but in the discipline and time.
Building a future that lasts
The super data tells us where we are today, but it doesn’t decide where we end up.
Australia’s super system was designed to give every worker a foundation. What we do with it — how we invest, how much we add, and how long we let compounding work — determines the final outcome.
So rather than seeing those averages as a limitation, think of them as a starting line.
Because the story of wealth, like the story of human progress itself, has always rewarded those who stay optimistic, keep investing, and play the long game.
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