With the age pension offering only the bare essentials, most Australians aiming for a comfortable retirement will need to rely heavily on their superannuation.
But how do you know if you're actually on track?
Let's be honest — super balances aren't something people chat about over coffee. That makes it hard to know where you stand, whether you're ahead of the curve or falling behind.
So, if you've just turned 50 and are wondering what your superannuation balance should look like, here's what the latest numbers say — and what they could mean for your retirement.
What is the average superannuation balance at age 50?
While there's no exact figure for a 50-year-old, Rest Superannuation gives us a solid estimate by looking at the two closest age brackets.
For ages 45–49, the average superannuation balance for men is $180,958 and for women is $136,667.
Whereas for ages 50–54, the average is $237,084 for men and $176,824 for women.
Based on this, it's reasonable to assume that the average 50-year-old has a balance somewhere in the middle of these ranges. So, this could mean approximately $209,000 for men and $156,000 for women.
If your balance is in that ballpark, you're roughly tracking in line with the average. But is average enough for the kind of retirement you want?
How much super could you have by retirement?
If you're 50 now, you have got 17 years until you reach the pension age at 67 — more than enough time for compounding and consistent contributions to do their work.
Let's say you start with a balance of $156,000 (women) or $209,000 (men), add $750 per month, and achieve a 9% annual return, by the time you are 67, your balance would grow to $1.02 million and $1.25 million, respectively.
The good news is this puts both on the comfortable side of retirement, according to AFSA. It estimates that a $595,000 super balance is needed for a 67-year-old to fund a (single person's) comfortable retirement lifestyle. This is described 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.
What if you're behind the curve?
If you are behind the curve, don't worry. As long as you have time on your side, you could still make it to a comfortable retirement.
You may just need to make extra contributions to your superannuation to take full advantage of compounding. Every bit extra you invest now can make a world of difference further down the line.
It could also pay to review the performance of your superannuation fund to ensure that you are not entrusting your hard-earned money with a perennial underperformer.
Foolish takeaway
Knowing your current super balance — and how it compares — gives you a realistic picture of what's possible.
Whether you're ahead, on track, or behind, the most important thing is this know your number, understand your goal, and take action now to bridge the gap if necessary.
Retirement may still feel like a distant horizon, but with 17 years to go, you've got time — and the tools — to build the future you want.
