New figures show that places such as Canberra, coastal retirement towns and regional mining areas are surpassing capital cities in average superannuation balances. High earnings in certain industries and older populations are fuelling these trends along with growing inequality within city electorates.
Superannuation wealth is no longer limited to inner-city or affluent suburban areas. A recent analysis by a prominent superannuation association has found that regional centres and popular retirement destinations are now competing with capital cities. Canberra sits at the top nationally with an average super balance of $223,585.
The data, based on taxation and demographic information, shows that towns in South Australia, Queensland and New South Wales are prominent among the top locations. Victor Harbor and Goolwa in South Australia, which are popular with retirees, have the second-highest average at $199,072. Mining towns such as Newcastle and Queanbeyan are also performing strongly due to higher local wages, with average balances nearing $200,000. Notably, five of the ten towns with the highest balances are in New South Wales, highlighting the influence of both industry type and population structure.
Looking closer at capital cities reveals a different pattern. Metro averages remain relatively high in places like Sydney and Melbourne, yet internal income inequality drags the city-wide averages down. In Sydney’s Wentworth area, the average super balance is $378,000, which is more than five times greater than in Blaxland, where it's just $75,000. These variations within cities help explain why regional areas are now topping average balance lists.
Two main factors appear to be behind this broader trend - how long people have been contributing to super and how much they earn. Areas with older populations tend to show higher balances due to longer contribution periods. This is particularly evident among those aged 65 to 74, who typically hold their highest balances just before making withdrawals. Mining towns benefit from higher wages, which lead to more substantial super contributions.
Places with younger populations and higher rates of part-time work, such as Darwin, report lower average balances. This is mainly due to less time in the workforce. Still, there are promising signs for future growth. Policy changes, including the removal of the $450 monthly income threshold for compulsory super contributions, have expanded access and allowed more Australians to grow their retirement savings.
These developments reflect how retirement savings are shaped by where people live, what kind of work they do and their age. Super balances are influenced by wage levels as well as individual life stages, local economic conditions and recent policy reforms, all contributing to the changing landscape of retirement wealth across Australia.
