For many Australians, turning 55 is when retirement planning starts to feel very real.
With just over a decade until the age pension kicks in at 67, your superannuation balance begins to take centre stage.
The big question becomes: Am I on track for a comfortable retirement, or do I need to make up ground?
Super can be a hard topic to gauge because it isn't something people tend to compare openly. So, where does the average 55-year-old actually stand? Let's find out.
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What is the average superannuation balance at 55?
Unfortunately, there is no data to provide a precise figure for age 55, but by looking at the surrounding brackets we can work out a reasonable estimate.
According to Rest Super, for Australians aged 50–54, the average superannuation balance is approximately $237,000 for men and $177,000 for women. For those aged 55–59, the averages climb to roughly $302,000 for men and $228,000 for women.
Using those ranges, I think it is fair to estimate that the average 55-year-old man holds around $270,000 and the average 55-year-old woman holds $200,000 in super.
If your balance is near that, you're tracking in line with the average. But is being average enough to secure the retirement you want?
What do you need?
Everyone is different, but according to the Association of Superannuation Funds of Australia (ASFA), a single retiree needs around $595,000 in super to fund a comfortable retirement.
This is one that covers essentials like groceries, insurance, transport, and some discretionary spending such as eating out, leisure activities, and the occasional holiday.
Unfortunately, according to the Moneysmart superannuation calculator, the average single 55-year old man and woman earning $70,000 a year would fall short of the comfortable retirement and have balances of $470,000 and $375,000, respectively, at the aged of 67.
The good news is that the average couple would be well ahead of the curve with a combined balance of just under $850,000.
Alternatively, for a modest retirement, which covers basic living costs, including essential expenses and some leisure activities, but with limited discretionary spending, a single person would need $100,000.
What if your balance is behind?
Being below the average isn't a deal-breaker. There are still ways to close the gap before retirement, including making additional concessional or non-concessional contributions (within annual limits) and ensuring your super is invested in an option that matches your time horizon and risk tolerance.
It is also worth checking whether your fund's performance is competitive. Over time, even small differences in returns can have a major impact on your end balance.
Foolish takeaway
Knowing where you stand at age 55 is the first step to understanding what needs to happen between now and retirement. While being at or above the average can provide peace of mind, what truly matters is whether your super balance — combined with other assets and income sources — can deliver the lifestyle you're aiming for.
With around a dozen years left before pension age, there's still plenty of time to grow your nest egg and set yourself up for the retirement you want.
