Average superannuation balance in Australia, so defined contribution pension fund, is AU$170,000. All workers get 12% of their wages from their employer added to it by law. I think the hope is that eventually, there will be no aged pension and people will depend on their super rather than the government for retirement.
Note that the US has Social Security, which this article is also excluding, along with individual assets that aren’t in specifically retirement accounts.
EDIT: From the report being quoted:
Social Security constitutes half of income for the typical older adult. Income from retirement plans – both defined
benefit (DB) and defined contribution (DC) – represents about a fifth of income on average.
Yes, Australia has a means tested aged pension too. This is seperate. It’s relatively new, so those at retirement age haven’t had it their whole life. However those approaching retirement soon will have had.
It’s only recently risen. It started out with a lower percent contribution. The fact that it has risen in the last few years is seen as a contributing factor that wage growth is small. Businesses had to pay their workers an extra percentage at just the time inflation was biting and workers wanted wage increases… businesses said they couldn’t afford both but we’re legally required to do the super guarantee increase.
Average superannuation balance in Australia, so defined contribution pension fund, is AU$170,000. All workers get 12% of their wages from their employer added to it by law. I think the hope is that eventually, there will be no aged pension and people will depend on their super rather than the government for retirement.
Note that the US has Social Security, which this article is also excluding, along with individual assets that aren’t in specifically retirement accounts.
EDIT: From the report being quoted:
Yes, Australia has a means tested aged pension too. This is seperate. It’s relatively new, so those at retirement age haven’t had it their whole life. However those approaching retirement soon will have had.
It’s only recently risen. It started out with a lower percent contribution. The fact that it has risen in the last few years is seen as a contributing factor that wage growth is small. Businesses had to pay their workers an extra percentage at just the time inflation was biting and workers wanted wage increases… businesses said they couldn’t afford both but we’re legally required to do the super guarantee increase.
Australia’s superannuation system is unique in the world, many other countries would kill to have something similar.
Yet another thing to thank PJK for.
https://www.youtube.com/watch?v=nFGXZuqvZ8g