Knowing how much super you should have at your age is crucial for planning a comfortable retirement. While there’s no one-size-fits-all answer, understanding average balances and factors influencing your super can help you assess your progress and make informed decisions.
Average Super Balances by Age Group
Here’s a breakdown of average super balances for employed Australians across different age groups, based on the Australian Taxation Office’s statistics from the 2020-21 financial year:
| Age Group | Average Account Balance (Men) | Average Account Balance (Women) |
|---|---|---|
| 18-24 | $8,148 | $7,328 |
| 25-29 | $25,981 | $23,429 |
| 30-34 | $56,344 | $46,289 |
| 35-39 | $95,937 | $75,785 |
| 40-44 | $139,431 | $107,538 |
| 45-49 | $190,716 | $142,037 |
| 50-54 | $246,955 | $182,167 |
| 55-59 | $316,457 | $236,530 |
| 60-64 | $402,838 | $318,203 |
| 65-69 | $453,075 | $403,038 |
| 70-74 | $509,059 | $451,523 |
| 75 or more | $507,556 | $436,865 |
Note: These figures represent averages and may not reflect individual circumstances.
Factors Influencing Your Super Balance
Several factors can influence your super balance, including:
- Age: The longer you work and contribute to super, the higher your balance will likely be.
- Salary: Higher salaries typically result in larger super contributions.
- Workforce participation: Taking time off work for study, travel, or caring for family can impact your super contributions.
- Superannuation guarantee: The percentage of your salary your employer contributes to your super.
- Investment performance: The returns generated by your super investments can significantly impact your balance.
- Super fund fees: High fees can eat into your super balance over time.
Assessing Your Super Balance
Comparing your super balance to the average for your age group can provide a general idea of how you’re tracking. However, it’s crucial to consider your individual circumstances and retirement goals.
Here are some questions to ask yourself:
- What lifestyle do I want in retirement?
- Do I have any other sources of retirement income, such as investments or property?
- What is my expected retirement age?
- Am I on track to meet my retirement goals?
If you’re concerned about your super balance, consider the following:
- Review your super fund: Ensure you’re in a fund with low fees and a strong investment performance history.
- Consolidate your super: Combining multiple super accounts can help reduce fees and simplify your super management.
- Make voluntary contributions: Consider making extra contributions to boost your super balance, especially if you’re behind on your retirement savings.
- Seek professional advice: A financial advisor can help you develop a personalized retirement plan and optimize your super contributions.
Knowing how much super you should have at your age is essential for planning a comfortable retirement. By understanding average balances, factors influencing your super, and assessing your individual circumstances, you can make informed decisions to ensure you’re on track to meet your retirement goals. Remember, it’s never too late to start planning for your future.
FAQs
1. How much super do I need to retire comfortably?
The amount of super you need to retire comfortably depends on your desired lifestyle, expenses, and other sources of income. You can use retirement calculators or consult a financial advisor to estimate your retirement needs.
2. What are the different ways to boost my super balance?
- Make voluntary contributions.
- Consolidate your super accounts.
- Choose a super fund with low fees and strong investment performance.
- Consider salary sacrificing.
- Take advantage of government incentives, such as the super co-contribution scheme.
3. When can I access my super?
Generally, you can access your super when you reach your preservation age and retire. However, there may be special circumstances under which you can access your super early.
4. What are the risks of not having enough super?
Not having enough super can significantly impact your retirement lifestyle. You may need to rely on government benefits or continue working longer than you planned.
5. How can I find lost or unclaimed super?
You can use the ATO’s online tools or contact your super fund to find lost or unclaimed super.
Retirement stress is increasing
The report emphasizes how, in recent years, financial stress related to saving for retirement has increased. Compared to the 2020 report, more people anticipate having a financially challenging retirement, especially older Australians and those without clear goals. Overall, 221 percent of working Australians are not confident that they will be able to attain their desired standard of living in retirement (2022–2023; up from 2017–2022–2023; down from 2014–2015), and only 9 percent are very confident. Stress can be reduced by maintaining your super balance and making a plan if you fall behind on your retirement savings.
Find your lost super
If you’ve changed jobs, your name or address over the years, or worked part-time or casual jobs, there’s a chance you may have lost track of some of your super and could be paying multiple fees on different accounts. Find out more about how to find your lost or unclaimed super.