Super news for retirees
GEELONG region residents’ superannuation accounts are ballooning, with data revealing the region has a higher super balance than the national average.
The average superannuation account in the region has a balance of $139,152, versus the national average of $132,646, Association of Superannuation Funds of Australia data shows.
But Geelong is slightly behind the Victorian average of $142,412.
The region’s top super balances were held by residents of Queenscliff ($348,824), Barwon Heads ($308,698), Aireys Inlet ($288,733), Lorne ($252,562) and Geelong ($242,463). Meanwhile, at the bottom of the list were Breakwater ($108,125) and Corio, which had an average super balance of $66,736.
ASFA chief executive Martin Fahy said geographic factors could strongly influence superannuation account balances, with balances in coastal or inner-city suburbs tending to be higher than for outer suburbs of cities.
“Superannuation account balances are tied to income, so areas with a higher proportion of high income earners tend to have higher average superannuation account balances,” Dr Fahy said.
“We see this in more affluent suburbs, in major cities, and in some ‘sea change’ or ‘tree change’ destinations.”
The average super balance for the Corangamite electorate is $172,048, compared with the Corio electorate’s $139,152, which ASFA used to derive the average superannuation the region.
Average superannuation balances also varied with industry and occupation, Dr Fahy said.
If an area has an above average number of people working in public administration, education or health services, average balances are for likely to be higher than if most people are working in retail or transport services.
Dr Fahy said self-employed people tended to have lower superannuation balances on average, which was common in rural and regional areas centred on agriculture.
According to the ASFA retirement standard March quarter, couples aged around 65 need to spend $61,061 a year to achieve a comfortable retirement, whereas singles need to spend $43,255.
Dr Fahy said a legislated increase in superannuation guarantee to 12 per cent of salary, from the current 9.5 per cent, would help people achieve a comfortable retirement.
“However, if it doesn’t reach 12 per cent, many Australians, including those from Geelong, risk missing out on the retirement lifestyle they had imagined,” he said.
His tips for savers were to check their super balance and consider ways to boost their retirement outcome.
“Making extra contributions to your account, consolidating multiple accounts, and checking whether your account balance is on track using one of AFSA’s calculators are a few simple measures that can help set you on track,” Dr Fahy said.