What does a comfortable retirement look like? According to the Association of Superannuation Funds of Australia (ASFA), it's a lifestyle where you don't just get by — you enjoy yourself. Think private health cover, local holidays, dinners out, home improvements, exercise classes, streaming services, and even the ability to replace the car when it's needed.
But the key question for many Australians is: how much superannuation do you actually need at age 55 to be on track for that kind of retirement?
The numbers at age 55
The Australian Retirement Trust says the average 55-year-old should have around $377,000 in superannuation to be on track for a comfortable retirement.
Reality, however, paints a different picture. Data from Rest suggests the average balance for those aged 55 to 59 is $301,922 for men and $228,259 for women.
That's a significant gap. And while these averages show that many Australians are falling short, the good news is that at 55, there's still meaningful time left to make a difference. Retirement may be 10 years or more away, giving compounding growth a chance to work in your favour.
1. Salary sacrifice and top-ups
One of the simplest levers is to make additional contributions. Extra concessional contributions via salary sacrifice can boost your balance and reduce your taxable income at the same time. For those who have unused cap space from previous years, the "catch-up" provisions allow you to contribute even more.
There's also the option of non-concessional contributions, if you have funds outside super and space under the cap. These extra boosts can make a surprisingly large difference once compounding is factored in over a decade.
2. Check your fund's returns and asset mix
Not all super funds are created equal. Fees, investment strategy, and risk profile can have a huge impact on long-term growth.
If you're still working and won't be drawing on your super for years, a portfolio tilted too heavily toward income or conservative assets may not deliver the growth needed to close the gap. For many people in their mid-50s, a balanced or growth option may provide better compounding potential, though the right choice always depends on personal circumstances.
The key is ensuring that your fund's performance is outpacing inflation and that your money is working as hard as you are.
3. Reduce fees and invest outside super
Superannuation is a powerful, tax-advantaged structure. However, it doesn't need to be the only pillar of your retirement plan.
Reducing unnecessary fees and boosting contributions are part of the picture, but building wealth outside super can give you more flexibility. A simple strategy could be to invest in broad-market exchange-traded funds (ETFs), which have historically delivered strong long-term returns. Another option is to add exposure to quality companies with durable competitive advantages that can grow faster than average.
These investments can provide an extra layer of financial security, helping ensure your nest egg not only covers the "comfortable" standard but also outlasts inflation and life's inevitable surprises.
Foolish takeaway
The average super balances at age 55 show many Australians have some catching up to do. But with 10 or more years still ahead before retirement, there's time to make meaningful progress.
Whether through salary sacrifice, checking your fund's growth potential, or investing outside of super, taking action today can help close the gap. And while benchmarks are useful, the ultimate goal isn't just hitting a number — it's reaching retirement with the confidence that your savings can support the lifestyle you want.
