HOW DOES YOUR SUPER STACK UP?
Superannuation is an element of our lives that runs in the background, unassuming, until we get to an age where we really have to consider how our super measures up come retirement time.
If you’re super balance is on the right track, then you’re on your way to reach a comfortable retirement. Its important to get familiar with your super from an early age, simply for the fact that you can be more mindful of how much you have and need to retire comfortably or start increasing your contributions if your situation allows.
Did you know that you can technically retire at any age?
However, there is an official age for anyone to quality for the aged pension. Where you could retire at the age of 65, this has been increased to 67.
The average super balance required to retire ‘comfortably’ at the age of 67 is:
- $595,000 for a single person
- $690,000 for a couple
These amounts also based on a number of caveats, such as:
- they withdraw their super as a lump sum
- they rely on a part-pension
- they own and have paid off their own home
If there are certain personal goals you wish to achieve for your dream retirement, then there are certain financial goals that are recommended for each age group:
| Age | Balance for comfortable retirement |
| 23 | $5,500 |
| 25 | $18,500 |
| 30 | $59,000 |
| 35 | $101,500 |
| 40 | 156,000 |
| 45 | $213,000 |
| 50 | $281,000 |
| 55 | $361,000 |
| 60 | $453,000 |
| 65 | $549,000 |
| 67 | $584,000 |
What is also important to note, is that your super balance is can differ from men to women. According to the ATO’s statistics for the 2021 financial year, the older you get, the larger the disparity is between what a man receives as opposed to a woman. However, those figures reflected that both men and women are behind the target when it comes to reaching a comfortable retirement.
It pays to regularly check your superannuation balance and have small goals to increase your super balance. There are a few things you can do to begin boosting it:
- Make additional payments (this can be done through salary sacrificing) or contributions after tax
- Check for lost super from previous jobs
- Regularly give your super fund a health check to make sure you aren’t paying too much in fees
Beginning this process early and nurturing your superannuation account can provide you with more awareness of what you want your life to look like come retirement. And speaking with a Financial Advisor will provide much more transparency and certainty on the steps you need to take in order to bolster your balance.