The superannuation balance you need right now to be on track to achieve a comfortable retirement has been revealed. The amount that Aussies need in their nest eggs has hit an all-time high, leaving some older workers facing a significant shortfall.
The Association of Superannuation Funds of Australia now estimates a single person needs a lump sum of $630,000 by age 67 to retire comfortably, while couples would need $730,000. That means a 40-year-old would need $117,700 today to reach that target if they are earning $90,000 a year, while a 50-year-old would need $262,200.
ASFA chief policy and advocacy officer James Koval told Yahoo Finance it was important to remember that retirement was personal and every retirement would look different financially.
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“Benchmarks like these are a guide, not gospel,” Koval said.
“Super is one part of financial security in retirement, alongside the Age Pension, savings outside super, and even homeownership.”
ASFA’s lump sum benchmarks are based on someone who owns their own home and receives a part Age Pension from the government.
|
Age |
Earning $65,000 wage |
Earning $90,000 wage |
|
30 |
$70,500 |
$9,900 |
|
35 |
$118,000 |
$59,900 |
|
40 |
$178,000 |
$117,700 |
|
45 |
$239,000 |
$184,700 |
|
50 |
$313,500 |
$262,200 |
|
55 |
$399,000 |
$352,100 |
|
60 |
$496,500 |
$456,100 |
|
65 |
$604,500 |
$576,600 |
There is a noticeable gap between how much Aussies need in their superannuation and how much they actually have.
The latest ATO data showed the median balance for an Aussie in the 40 to 44 age group was $93,351, while for those in the 50 to 54 age group it was $147,857.
The gap was even wider for older Aussies approaching retirement, with those in the 60 to 64 age group having a median balance of $189,618. That’s compared to the $456,100 needed at age 60 to retire comfortably.
There are steps you can take if your super isn’t where you’d like it to be.
“For some who are early in their working lives, small additional contributions made now can make a significant difference over time, thanks to the compounding effect of super’s low-tax environment,” Koval told Yahoo Finance.
“Others might find it really helpful to call their fund for some guidance, or discuss their concerns with a financial adviser.”