Most Australians think that because they have been paying into super for decades they are automatically moving toward a comfortable retirement. They see a number on their statement. They nod. They think
“She’ll be right. Surely it will be fine.”
Alright here is what that really means.
No. Absolutely not. Because here is the truth that almost no one says out loud. Most Australians after 40 years of compulsory super still retire on the pension. Not because they failed. Not because they were irresponsible. But because the system itself was never built to get them off the pension.
Super Was Supposed To Fix Retirement. It Did Not.
When compulsory super began the promise was simple. Save while you work. Retire comfortably when you stop. That was the dream. But the real world numbers tell a different story.
According to the Australian Institute of Health and Welfare, 62 percent of retirees still rely on the Age Pension as their main income.
https://www.aihw.gov.au/reports/older-people/older-australians
Alright here is what that really means.
Super did not replace the pension. It just delayed the moment people arrived at Centrelink.
The Numbers Tell A Very Different Story
Here is where the illusion really cracks. The median super balance at retirement is around 180,000 dollars according to the ATO.
https://www.ato.gov.au
That may look alright when you see it as one big number. But convert it into income and you end up with something like 300 dollars a week.
Alright here is what that really means. That is not a retirement. That is a slow financial chokehold. And here is the kicker.
Research from the Productivity Commission showed that almost one third of Australians now reach retirement still owing money on their mortgage.
https://www.pc.gov.au
So you are meant to retire on a smaller income with the same bills and rising costs in a country where everything from milk to petrol is auditioning for the Olympics. No wonder the pension keeps catching people.
The Accumulation Illusion
Super funds focus on one thing. Growing a balance. The bigger the number the better the narrative. They talk about ten-year averages. Long term performance. Diversification. Lifecycle options. It all sounds impressive but it misses the only point that matters. A balance is not a retirement plan. A lump sum is not income. A projected return is not groceries. The Actuaries Institute summarised it perfectly:
“Accumulation balances do not translate directly into sustainable retirement income. Members remain unclear about what their balance actually means.”
Actuaries Institute
https://www.actuaries.asn.au
Alright here is what that really means.
The system is designed to show you a number, not to show you a future.
Why The Pension Keeps Catching Australians
Here is the underlying problem. Most super accounts are built for accumulation, not for income. Markets go up and down. Fees go out no matter what. Balances fluctuate. And when a retiree suddenly needs predictable income super suddenly looks like a shaky bridge.
So, what do people do?
They fall back on the pension. Not because they want to. Because the system quietly assumed they would. The Grattan Institute warned in 2023:
“Most Australians will continue to rely heavily on the Age Pension because superannuation balances alone will not provide adequate retirement incomes for a majority of workers.”
Grattan Institute
https://grattan.edu.au
Alright here is what that really means.
Super was never designed to fully fund your retirement. It was designed to fund part of it. The government assumed Centrelink would cover the rest.
The Missing Ingredient Real Income
This is the part no one teaches. A good retirement comes from income.
An incomes that is predictable, consistent, stable and understandable.
The people who retire well, the ones who travel, the ones who never worry at the checkout and the ones who do not freeze at the sight of a power bill,- they all have one thing in common.
Income that arrives no matter what markets are doing.
And what produces that?
Assets that pay you, rather than assets you stare at on a statement.
Alright here is what that really means.
If your retirement depends on whether the market has a mood swing, you do not have a retirement.
You have a gamble.
Where Super Equity Link Fits Into This
Super Equity link is not about magic. It is about replacing uncertainty with structure. Inside your super you can own an income producing property.
A real asset.
A visible asset.
An asset that pays rent every month.
Rent that does not care about Wall Street or headlines or elections.
You know what rent is.
You know what property is.
You know what income feels like when it turns up consistently.
That is what retirement should look like.
Something that works in the real world, not just on a glossy statement.
What You Should Take Away
Most Australians retire on the pension after 40 years of super. Not because they failed. But because the system was never designed to lift them out of it.
Your retirement is not a balance. It is not a projection. It is not a decade of averages. It is income. Real income.
If you want a retirement that actually works you need assets that pay you not hope that your balance does not run out.
If you would not build a house on hope, why would you build your retirement on it?
References
Actuaries Institute. (2023). Retirement income report.
https://www.actuaries.asn.au
Australian Institute of Health and Welfare. (2023). Older Australians: Income and finances.
https://www.aihw.gov.au/reports/older-people/older-australians
Australian Taxation Office. (2024). Super account balances data.
https://www.ato.gov.au
Grattan Institute. (2023). Balancing budgets and retirement incomes.
https://grattan.edu.au
Productivity Commission. (2019). Superannuation: Assessing efficiency and competitiveness.
https://www.pc.gov.au/inquiries/completed/superannuation/assessment/report