How does your super compare to your age group?
30 September 2019
As of June 2017, more than 14.8 million Australians had a super fund, according to the Australian Tax Office (ATO). While that represents over half of the total population, research by finder.com.au suggests only 42% of us know our exact super balance.
Although retirement may be a way off, it’s important to know you’re on track. So let's explore average super savings by age, and the recommended amount you should aim for retirement.
How much super do I have?
The below information from the ATO, based on 2015–2016 data, shows the median super account balance by age and gender:
Bear in mind that these figures are just a midpoint, and of course everyone's personal situation is different. However, it's useful to have an understanding of how your super balance stacks up against your peers.
But how much should you be aiming for to retire?
Although there is no concrete amount for how much you need to have in your super when you retire, there are guidelines.
According to a retirement standard established through research by the Association of Superannuation Funds of Australia (ASFA):
- a couple should aim to have $640,000 for a comfortable retirement
- a single person should aim towards $545,000 for a comfortable retirement.
In this standard, a comfortable retirement lifestyle is defined as one in which a retired person in good health could enjoy a wide variety of recreational and leisure activities, as well as a decent living standard.
In case you're panicking at these figures, retirement savings encompasses more than just your super. It includes other income sources such as the Age Pension (if you’re eligible). That said, investing in your super earlier is crucial for a comfortable retirement.
So how can you grow your super?
Search for and consolidate your accounts
If you've held multiple jobs, or even if you haven't, you could have savings in different super accounts. As well as making it harder to keep track of your money, each of these funds will have its own fees. By putting all your super into one account, you reduce your fees. However, it's worth considering how this may affect your insurance.
Super schemes that may benefit you in more ways than one
Initiatives such as government co-contributions, where the Federal Government pays up to 50 cents for every $1 you invest in your super, or making additional, before-tax contributions where you can save on tax (salary sacrifice), can help boost your super.
Whatever your age, it's never too early to boost your super, and we’re here to help. We can give you the financial advice you need to make the most of your retirement savings.
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