Superannuation is one of the most important financial tools for securing your retirement, but how does your balance stack up against the average for Australians in your age group?
Understanding where you stand can provide valuable insight into whether you're on track for the lifestyle you envision in retirement — whether that's a comfortable retirement with plenty of financial freedom or a more modest lifestyle covering the basics.
Different retirement lifestyles
Firstly, let's look at what a comfortable and modest lifestyle in retirement means according to Association of Superannuation Funds of Australia (ASFA). It is the peak policy, research and advocacy body for Australia's superannuation industry.
ASFA describes a comfortable retirement as follows:
The comfortable retirement standard allows retirees to maintain a good standard of living in their post work years.
It accounts for daily essentials, such as groceries, transport and home repairs, as well as private health insurance, a range of exercise and leisure activities and the occasional restaurant meal. Importantly it enables retirees to remain connected to family and friends virtually – through technology, and in person with an annual domestic trip and an international trip once every seven years.
Whereas a modest retirement strips back on things like international trips and leisure activities. It is described as:
The modest retirement standard budgets for a retirement lifestyle that is slightly above the Age Pension and allows retirees to afford basic health insurance and infrequent exercise, leisure and social activities with family and friends.
What do you need?
Based on the assumption that the retirees own their own home outright and are relatively healthy, a comfortable retirement currently requires the following superannuation at 67:
- Couples: $690,000
- Singles: $595,000
For a modest retirement, significantly less is required:
- Couples: $100,000
- Singles: $100,000
How do you compare?
That's how much you need, but how much superannuation do Australians actually have? Here's the most recent data according to QSuper:
| Age | Men | Women |
| 15 to 24 years | $6,500 | $5,100 |
| 25 to 34 years | $42,100 | $34,500 |
| 35 to 44 years | $107,700 | $76,900 |
| 45 to 54 years | $219,300 | $136,000 |
| 55 to 64 years | $326,000 | $246,300 |
| 65 to 74 years | $435,900 | $381,700 |
| 75 years+ | $370,900 | $314,100 |
Do you have enough to retire comfortably?
This is a difficult question to answer because everybody is different.
But you can use a calculator like this one to plug in your numbers and find out whether or not you are on track to retire comfortably.
If you are on track, that's great! If not, don't be too disheartened. Making extra superannuation contributions could help you get to target by the time you retire.
But it is worth remembering that the comfortable retirement figures are for today. Due to inflation, someone in their 20s will likely require significantly more when they reach retirement age than someone who is about to retire.
So, always aim for more superannuation than you think you will need. It's certainly better to have too much than too little.
