For many Australians, the mid-40s are when retirement planning begins to move from the background into sharper focus.
By this stage of life, people are often more established in their careers, mortgages may be starting to shrink, and superannuation balances should ideally be building momentum.
But how does the average 45-year-old really stack up?
What is the average superannuation balance at 45?
There isn't a precise figure for Australians aged exactly 45, but data from Rest Super gives us an idea by looking at the two closest age brackets.
For women aged 40–44, the average super balance is $102,227. By the time they reach 45–49, it rises to $136,667.
For men, the average balance is $131,792 between ages 40–44, increasing to $180,958 at 45–49.
From this data, I think it is reasonable to estimate that the typical 45-year-old Australian woman has around $120,000 in superannuation, while the average man at the same age has closer to $156,000.
What does this mean for retirement planning?
Knowing the averages is always useful, but the more important question is whether these balances are on track to deliver a comfortable retirement.
The good news is that at 45, there is still more than two decades until pension age, which means plenty of time for contributions and compounding returns to work their magic. So don't panic if you are not on target at present.
Are you on track for a comfortable retirement?
Based on Rest Super's calculator, a woman aged 45 with $120,000 in superannuation and a salary of $65,000 per annum, is on track to retire with a balance of approximately $370,000.
For the average man with $156,000 and the same age and salary, they would have an estimated balance of $425,000 at retirement.
According to the Association of Superannuation Funds of Australia (ASFA), a single retiree needs around $595,000 in super for a comfortable lifestyle, while a couple needs about $690,000.
As you can see above, the average single person would fall short of ASFA's requirements. However, the average couple would be comfortably ahead of what is required with a combined balance of approximately $795,000.
Foolish takeaway
Whether you're above or below the averages, the key takeaway is that age 45 is a pivotal checkpoint. This is a great time to review whether your super fund is performing competitively, consider making extra contributions where possible, and ensure your investment option matches your risk tolerance and time horizon.
Even small changes at this stage can make a big difference in the decades to come.
