Hitting 60 is a milestone that often brings retirement planning into sharp focus.
With only a few years left until the pension age of 67, Australians in this bracket are beginning to seriously evaluate whether their superannuation savings will deliver the lifestyle they want in retirement.
But how much super does the average 60 year old actually have? And more importantly, is it enough?
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What is the average super balance at 60?
While there's no precise figure for someone aged 60, data from Rest Super gives us a clear range by looking at nearby age groups.
For Australians aged 55–59, women average $228,259 in superannuation and men average $301,922.
That figure jumps for the 60–64 age group, with women at around $300,717 and men at $380,737.
From this, it's fair to assume the average 60 year old's balance sits somewhere around $265,000 for women and $340,000 for men.
That's a healthy increase from balances in the 50s, as covered here, but whether it is enough for retirement is another question entirely.
What do you need?
There are two types of retirement according to the Association of Superannuation Funds of Australia (ASFA). One is a comfortable retirement, and the other is a modest lifestyle.
The savings required to achieve a comfortable retirement is $690,000 for a couple and $595,000 for a single. Whereas both a couple and a single require $100,000 for a modest retirement.
A comfortable retirement is defined as follows by ASFA:
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.
On the other hand, a modest retirement lifestyle is considered to be better than the age pension, but still only allows for the basics.
Is the average balance on track for retirement?
Using the Moneysmart superannuation calculator, the average single 60 year old female with $300,000 in super and a salary of $70,000 a year would have $420,000 at pension age.
And the average single 60 year old male with $380,000 in super and the same salary would end up with $517,000.
This means that on a standalone basis, the average 60 year old Aussie is going to fall short of a comfortable retirement. However, the average couple is well ahead of what is required.
What if your balance is lower than average?
Falling short of the average balance at 60 doesn't necessarily spell disaster. Many Australians continue contributing to super well into their mid-60s, and even a few extra years of compounding can make a big difference.
It may also be worth exploring ways to top up super through salary sacrifice, voluntary after-tax contributions, or by reviewing your investment option to ensure it matches your time horizon.
And if you're concerned your fund's returns are lagging, comparing long-term performance against industry averages could be an important step.
Foolish takeaway
Knowing where the average sits at age 60 gives you a useful benchmark — but averages don't tell the whole story. What really matters is whether your balance, along with other assets and income streams, will provide the retirement lifestyle you want.
With just a few years left before pension age, it is crunch time. Now is the moment to check your balance, set realistic goals, and make any final adjustments to put yourself in the best position for life after work.
