Couples

The median net worth of couples with a workplace scheme is over $100,000 more than couples without a scheme. The median ratio of holdings to total net worth by couples with at least one partner enrolled is 17% (see Appendix Table 6). The workplace scheme represents a greater share of retirement wealth amongst the lower wealth quintiles. Amongst the richest net worth quintile those with a workplace scheme have lower median net worth than those without such a scheme. The high net worth quintile has a disproportionate share of self employed individuals who by definition would not have a current employer making a contribution.

There is some tendency for the proportion of couples enrolled in a workplace scheme to increase with age up til 45-55, but the overall trend is not striking (Appendix Table 7). The same is true for unpartnered individuals. It might have been expected that older cohorts who had entered the workforce at time when workplace superannuation schemes were more prevalent would have shown a greater enrolment rate than younger cohorts. It is possible that they did in fact join in greater numbers (perhaps because in some cases membership was compulsory) and have subsequently cashed in their schemes. Alternatively it might be the case that the younger age groups are in fact enrolling at rate similar to that which people have always enrolled, at least in the case of personal schemes.

As would be expected, the value of the holdings increases markedly with age and for older couples workplace superannuation reflects an important share of their total net worth. Furthermore, the share of total retirement wealth that is represented by workplace schemes tends to be higher when approaching retirement for both males and females in couples. In three out of the four age groups unpartnered women have higher median holdings in workplace schemes than men.

While only 15% of all partnered males nearing retirement (ages 56-64) are enrolled, among those who are enrolled the median ratio of holdings to total net worth is one half. In other words, for almost 1 in 6 pre-retirement partnered males, workplace superannuation represents an important share of their total retirement wealth accumulation.

Of couples in which at least one partner holds a workplace scheme, over 40% have in excess of $50,000 value in the scheme. Over 60% of couples holding a personal scheme have more than $20,000.

A summary across all individuals and couples is given in Appendix Table 8. For both males and females, those holding either type of superannuation scheme have typically twice the net worth of the population as a whole. Unpartnered females have greater accumulations in both types of scheme and greater total net worth than their male counterparts.

In summary, both individuals and couples who have a workplace scheme appear to have much higher median levels of net worth. The exception is those couples in the highest wealth quintile. This suggests that belonging to a scheme does result in greater overall retirement accumulation. It may be however that those enrolled have higher incomes, are more educated, or display some other particular characteristics. A valid comparison requires that we hold constant at least some of these differences across individuals. We conduct such a comparison in the Section 3.