Australians contributed a record $154 billion to their superannuation accounts in 2022, while at the same time super funds paid out more than $92 billion to beneficiaries, figures show.
The Australian Prudential Regulation Authority (APRA) has released its superannuation statistics report for the December quarter, and it shows there was more than $3.3 trillion in the super at the end of December.
While contributions for the year were the highest on record, the total amount in super is actually down slightly on the previous 12 months. Balances took a hit due to the performance of share markets and other sectors of the economy in 2022.
The $92 billion paid out to beneficiaries was the second highest on record. In 2020, $113 billion was paid to members who were allowed to access their super early due to COVID pressures. They withdrew more than $36 billion.
Still, it represents an 11.3 per cent increase compared with benefits paid out in 2021. APRA says: “These are in line with longer-term trends of a maturing superannuation system and ageing population.”
APRA found that the average fund had returned negative 5.5 per cent for the year, fuelled by share market failures and rampant inflation.
“Investment markets have been volatile over the year owing to aggressive monetary tightening by global central banks to curb inflation which slowed economic growth,” APRA says.
Martin Fahy, chief executive of the Association of Superannuation Funds of Australia (ASFA), told The Australian that figures were well above historical trends, a situation that bodes well for the health of the super system.
“Australians continued to have confidence in superannuation as a retirement savings vehicle,” he said.
“The increase in the superannuation guarantee to 10.5 per cent from 1 July 2022 was an important factor, but employment growth and increased voluntary contributions also would have had an impact,” he said.
Indeed, the APRA figures did show an 11.8 per cent jump in employer contributions after the guarantee increase came into effect. The guarantee is set to go up again to 11 per cent in July this year, increasing incrementally until it reaches 12 per cent in July 2025.
Did you contribute any extra to your super last year? Do you intend to make extra contributions this year? Let us know in the comments section below.
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