How Australia Saves 2019

The Australian superannuation industry is a vital component of the nation’s retirement income policy framework.

"How Australia Saves 2019" focuses on the 3-year period to 30 June 2018, and on deep analysis of transaction-level data from three large multi-industry superannuation funds; First State Super, Sunsuper, and VicSuper. These three funds have a combined membership of over two million, over 200,000 registered employers and total assets under management of $167.8 billion at 30 June 2018.

 
 

Superannuation Coverage

Superannuation in Australia has grown from modest beginnings in 1992 to near universal coverage of the working population today. The system is on its way to reaching maturity as a vehicle for all facets of accumulation, management and drawdown of retirement assets. All data as at 30 June 2018.

 
 
 

2019 marks the 27th year since the Superannuation Guarantee commenced on 1 July 1992.

Total assets under management with an average member account balance of $69,807.

source: APRA.

Minimum mandatory employer Superannuation Guarantee (SG) contribution.

2019 marks the 27th year since the Superannuation Guarantee commenced on 1 July 1992.

Total assets under management with an average member account balance of $69,807.

source: APRA.

Minimum mandatory employer Superannuation Guarantee (SG) contribution.

 
 

Breakdown of assets by fund types (%)


Source: Rice Warner

 
 
 

Research footprint

Vanguard's global defined contribution research footprint includes the United States, the United Kingdom and Australia.

 
 
 
How America Saves - Vanguard Research
How the UK Saves - Vanguard Research
How Australia Saves - Vanguard Research
 

Analysis of member data

from First State Super, Sunsuper and VicSuper

from First State Super, Sunsuper and VicSuper

The accumulation phase*

Member accounts are underpinned by mandatory employer SG contributions, now at the level of 9.5% of salary per annum. Members can make additional contributions within regulated limits, and incentive contributions are paid by the Government in some cases.

Analysis of First State Super, Sunsuper and VicSuper member data for three years to 30 June 2018.

 
 
 

Percentage of fund assets invested in growth investments.

Percentage of members who are in the default investment option.

Percentage of working members who made contributions to their super funds above the mandatory levels.

Percentage of fund assets invested in growth investments.

Percentage of members who are in the default investment option.

Percentage of working members who made contributions to their super funds above the mandatory levels.

 
 
 

Retirement phase*

The years around retirement age reflect an interesting phase of the superannuation system as members approach and pass over the transition.

 
 

Percentage of assets retained in the fund by pensioner members after income stream drawdowns during 2018 financial year.

The age of typical transition to retirement eligible member.

Percentage of members who are retired and are drawing down regular income streams.

We extend our thanks to the following partners who made this publication possible:

Participating partners logos

Percentage of assets retained in the fund by pensioner members after income stream drawdowns during 2018 financial year.

The age of typical transition to retirement eligible member.

Percentage of members who are retired and are drawing down regular income streams.

Members data sourced from these participating partners

Participating partners logos

 
 

The take-away

Mandatory SG contribution underpins Australia's superannuation system. But thoughtful default designs, advice and facilitation of member engagement are key to delivery of successful outcomes.

The take-away

Mandatory SG contribution underpins Australia's superannuation system. But thoughtful default designs, advice and facilitation of member engagement are key to delivery of successful outcomes.

 
 

For more on this topic

More information can be found in
Vanguard's research paper
How Australia Saves 2019

Research Paper: How Australia Saves 2019
Infographic
Poster: How Australia Saves 2019
Press Release

 
 

For more on this topic

More information can be found in
Vanguard's research paper
How Australia Saves 2019

Research Paper: How Australia Saves 2019
Infographic
Poster: How Australia Saves 2019
Press Release