Newly published tax data for the 2023 financial year shows the average superannuation balance of Australians aged 50 to 54 is $222,491.
If we break down the numbers between the sexes, the average superannuation balance for men aged 50 to 54 is $254,071.
The average for women aged 50 to 54 years is $190,175.
Is this enough for a comfortable retirement?
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How much superannuation do you need to fund a comfy retirement?
Created in 2004, the Australian Retirement Standard is the government-endorsed guide to retirement budgeting in Australia.
The Association of Super Funds of Australia (ASFA) adjusts the Standard quarterly for inflation, so the numbers are always current.
ASFA says couples need at least $690,000 and singles need $595,000 in superannuation to ensure a comfortable retirement from age 67.
These figures assume debt-free home ownership, receipt of a part-pension, and 6% total returns on superannuation savings per year.
So, with an average of $222,491 in your superannuation account at age 52, are you on track to reach $690,000 or $595,000 by age 67?
Are you on track?
Unfortunately not.
According to ASFA's Super Detective calculator, a 52-year-old needs $328,000 in super to be on track for the 'good life'.
ASFA has a specific definition for what a comfortable retirement is.
Essentially, it means being able to pay for all of life's basics plus plenty of extras.
Those extras include top-level private health insurance, a reasonable car, nice clothes, fast internet and mobile phone, many leisure activities, occasional restaurant meals, a domestic trip once per year, and an overseas vacation every seven years.
Right now, with an average of $222,491 in super, a 52-year-old worker can at least feel assured they'll be able to pay the bills.
That's what ASFA calls a 'modest' retirement.
Couples and singles only need $100,000 in superannuation to achieve that, and the average 52-year-old already has twice that amount.
A modest retirement means you'll be able to cover your bills, and you'll get by with basic private health insurance, a cheaper car, basic internet and mobile phone, infrequent leisure activities and restaurant meals, and one domestic holiday per year.
Having $100,000 in super doesn't sound like enough, right?
But ASFA says it is enough if you're also getting the full pension on top of the income returns from your super each year.
Changes to the pension announced this week
The Australian age pension will increase next month.
The Federal Government announced the new pension rates, plus changes to a variety of other social security payments, this week.
There will also be changes to the income and asset test limits to receive a part-pension.
You can find out all the new details here.
