Superannuation is working effectively to support members of all ages, genders and income levels, new research from the Association of Superannuation Funds of Australia shows.
ASFA's Outcomes: A snapshot of account balances in Australia found members are increasingly becoming self-sufficient in retirement thanks to mandated superannuation contributions.
The number of self-funded retirees is tipped to rise to 43% in 2023, which has almost doubled from 2000 at 22%.
Australians aged between 60 and 64 are retiring with a median balance of $154,453 - although this is well below ASFA's comfortable retirement standard of $545,000.
Women tend to retire with $122,848 compared to males who end up with a median balance of $154,453.
The good news is the gap between men and women is closing. In the two years to 2017, the average balance women's super has grown more than men's super of 15.4% and 11.4% respectively.
"Superannuation is increasingly delivering better retirements for Australians from all walks of life," ASFA chief executive Martin Fahy said.
"It is pleasing to see that the strongest growth occurred for those with lower balance accounts, and for women."
Fahy added that more Australians aspiring to be self-sufficient retirement and want more than what the Age Pension can provide.
"They want to be able to have financial security in their old age to cover medical costs, aged care and general expenses."
Despite the promising growth of account balances, the research found many Australians still face a retirement savings shortfall.
"The bipartisan, legislated policy of increasing the Superannuation Guarantee (SG) to 12% is by far and away the most critical step to ensuring an adequate retirement for all Australians," Fahy said.
The report also examined superannuation variances across the nation.
Superannuation members from the ACT ($186,743), Victoria ($142,412) and New South Wales ($133,643) have balances higher than the national average of $132,646.
Members living South Australia ($131,914), Tasmania ($126,348), Queensland ($123,636), Western Australia ($119,980) and the Northern Territory ($95,170) tend to have lower super savings.
Some regions proved to be outliers. Kooyong ($312,746), Higgins ($279,307) and Goldstein ($277,511) for example, had higher-than-average balances among Victorian electorates.
Meanwhile, La Trobe ($128,771), Monash ($122,829) and McEwen ($113,322) had much lower average balances.