What is the average amount people save for their retirement?

How much of your income should you be putting aside?

Happy young couple saving money in piggy bank.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Workers saved an average of 15% of their income for retirement in 2023, according to a global report just released by Natixis Investment Managers.

This level of savings represented an increase on 2021, when workers saved an average of 12%.

In 2019, the average was 15%.

The decrease in 2021 may reflect the impact of the pandemic.

Many people lost their jobs or worked fewer hours in 2020 and 2021 due to lockdowns in most countries.

Generational differences in retirement savings

The report found that the portion of income saved for retirement between 2019 and 2023 differed between the generations.

The baby boomers, who were born between 1946 and 1964, saved 15% of their income in 2019, 13% in 2021, and 15% in 2023.

Generation X, who were born between 1965 and 1980, saved 15% of their income in 2019, 10.5% in 2021, and 15% in 2023.

The only generation that consistently increased their level of savings over the period was the millennials.

Born between 1981 and 1995, they saved 10% of their income in 2019, 13% in 2021, and 15% in 2023.

In Australia, superannuation is the main way workers save for their retirement.

Superannuation was introduced in Australia in 1992. The mandatory contribution rate for employers has risen from 3% in 1992 to 11.5% today.

Superannuation provider Vanguard says more needs to be done in Australia to engage millennials in their retirement planning.

Sara Dix, Vanguard Australia's Head of Public Policy, said:

Outside of the family home, superannuation is usually the second-biggest asset for Australians. Yet, while most are clear on their mortgage interest rate down to the second decimal point, the same can't be said of superannuation balances or fees.

Worryingly, our research also found that retirement literacy and retirement confidence are low amongst the younger generations. 

Vanguard research shows 37% of millennials have no clear plan for retirement.

Other findings included that 40% of millennials don't know what they pay in superannuation fees.

Also, 41% do not know or are unsure if superannuation is taxed at a lower rate than other investments

Almost one in two millennials do not know or are unsure of the age pension eligibility rules.

More than 50% do not know or are unsure of the minimum age for superannuation access.

Latest MySuper statistics

This week, the Australian Prudential Regulation Authority (APRA) published its latest figures on default MySuper products.

MySuper is the default option offered by most super funds. Employers pay superannuation into this type of fund for workers who do not want to choose their own super product.

APRA has just over 14.7 million MySuper accounts registered.

The most common savings balance is $1,000 to $5,999 (14.5% of accounts). The next most common is less than $1,000 (12.4% of accounts), and $100,000 — $199,999 (11.6% of accounts).

Younger generations are more likely to have MySuper products.

The most common age groups among MySuper account holders are under-25 years (17.5%), 25-29-year-olds (13.4%), and 30-34-year-olds (12.5%).

Should you invest $1,000 in De Grey Mining Limited right now?

Before you buy De Grey Mining Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and De Grey Mining Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Retirement

Happy couple enjoying ice cream in retirement.
ETFs

How ASX ETFs could help you retire rich

These funds could be helpful for investors looking to retire with a nice nest egg.

Read more »

A couple are happy sitting on their yacht.
Retirement

Want to retire rich? I would invest $1,000 a month into ASX shares

$1,000 a month could go a long way if you have time on your side.

Read more »

Superannuation written on a jar with Australian dollar notes.
Retirement

Have you checked your superannuation balance this month?

What do you look for when choosing a super fund to help you retire in style?

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Retirement

From today you can earn and own more and still qualify for a pension in retirement

Indexation changes to age pension payments and the asset and income tests become effective today.

Read more »

An older gentleman leans over his partner's shoulder as she looks at a tablet device while seated at a table in their classic Australian old person's home, complete with comfortable furniture and family photographs on the walls.
Retirement

Changes to age pension and retirement assets and income tests announced

Indexation changes to the age pension will come into effect on 20 March.

Read more »

A woman wearing a bright multi-coloured dress, blue sunglasses and hat stands on a beach laughing with her arms outstretched enjoying herself
Retirement

3 ASX retirement shares to buy with $10,000

Analysts think these shares could be worth considering for a retirement portfolio.

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Retirement

These 3 ASX dividend shares are perfect for retirees

Retirees have different investing needs to other investors.

Read more »

A happy elderly man wearing a red cape smiles as he jumps up like a hero from a massage table.
Superannuation

Is my superannuation on track?

Here's how much superannuation you should have at your age right now to fund a comfortable retirement later.

Read more »