Superannuation has driven a tripling in wealth levels for middle Australians over the past 20 years, according to a new report by the Super Members Council (SMC).
The report, “The power of super: Building wealth for everyday Australians”, found that between 2002 and 2022, non-housing wealth grew by 196 per cent for Australians in the middle wealth bracket who are recent retirees, resulting in them being more than $256,000 better off in retirement.
“Thanks to the creation of super three decades ago, millions of everyday Australians now own a direct profit share in the nation’s economic growth for the first time,” SMC chief executive Misha Schubert said.
As a result of the increase in super wealth, the income retirees draw from superannuation has also more than doubled in the past 20 years, rising from $340 a week on average for recent middle wealth retirees in 2002 to $740 in 2022 in wage-adjusted terms.
“Those super savings owned by millions of everyday Australians are now one of Australia’s most important economic institutions – lifting retirement incomes for retirees, reducing pressure on budgets and supporting long-term growth and stability across the economy,” Schubert said.
SMC pointed out the growth in super wealth has come despite sluggish real wages growth and the ability of super funds to invest for their members in unlisted assets, such as airports and toll roads, has acted as a stabilising force in the economy.
“The RBA’s (Reserve Bank of Australia) latest “Financial Stability Review” (RBA 2025) also noted the superannuation sector has historically supported financial stability and that policy interventions impacting on liquidity, such as early release, could negatively impact the sector’s contribution to financial stability, underscoring the importance of that key policy principle of preservation,” the report said.
The report highlighted research for SMC by Frontier Advisers that found members could be disadvantaged if super funds were unable to invest in unlisted assets, with restrictions on such investments estimated to lower net returns by 0.3 per cent to 0.6 per cent each year. Such a drop, the research estimated, could lower the retirement balance of the average Australian by between $150,000 and $300,000.
