Turning 60 is a major milestone. It is the point where many Australians begin shifting their mindset from wealth accumulation to preparing for life after work. With the age pension starting at 67, this is a crucial period to assess whether your super is on track and what your retirement might look like.
Because superannuation balances aren't typically discussed among friends or family, it is hard to know whether you are doing better or worse than the national average. Fortunately, recent data gives us some clarity.
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What is the average superannuation balance at age 60?
There isn't an exact figure published for Australians at precisely age 60, so the best way to estimate it is by looking at the nearest age groups.
According to Rest Super data, women aged 55–59 hold an average balance of $228,259, while those aged 60–64 average $300,717. Using the midpoint between the two, a reasonable estimate for a 60-year-old woman is approximately $260,000 in super.
Men aged 55–59 have an average balance of $301,922, rising to $380,737 between 60–64. This puts the estimated average for a 60-year-old man at around $340,000.
These figures offer a helpful snapshot of how Australians are tracking as they approach retirement.
What could these balances grow to by retirement?
Someone aged 60 still has several years before reaching retirement age, giving their superannuation time to grow.
Using Rest Super's superannuation calculator and assuming an annual salary of $70,000, it estimates that a typical 60-year-old woman with a balance of $260,000 today could reach roughly $355,000 by retirement. Whereas a man with $340,000 at 60 is projected to reach about $447,000.
These projections assume contributions continue and investment markets behave broadly in line with long-term averages.
Is this enough for a comfortable retirement?
To understand whether these amounts are adequate, it's helpful to compare them with the Association of Superannuation Funds of Australia (ASFA) benchmarks.
ASFA estimates that a single retiree needs about $595,000 for a comfortable retirement, while couples require around $690,000 combined.
It defines a comfortable lifestyle as follows:
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.
Using this benchmark, many single Australians at age 60 may find they are tracking below the target for a comfortable retirement. However, the average couple is on track.
In addition, ASFA's modest retirement standard requires $340,000 for singles and $385,000 for couples, and it is described as follows:
The modest retirement standard budgets for a retirement lifestyle that is slightly above the Age Pension and allows retirees to afford basic health insurance and infrequent exercise, leisure and social activities with family and friends.
The age pension also helps fill gaps for retirees with lower balances.
What if your balance isn't where you'd hoped?
A lower-than-expected balance at 60 doesn't mean your options have run out. Many Australians boost their super in the final years of work.
Downsizer contributions allow eligible homeowners to add up to $300,000 from the sale of their home into super. Personal concessional contributions can also lift your balance, while still providing potential tax benefits. Even reviewing your super fund's fees or investment performance can have a meaningful impact over the final stretch to retirement.
Small steps taken now can make a material difference by the time you exit the workforce.
Foolish takeaway
Understanding the average super balance at 60 is a useful starting point, but it is only one part of the retirement equation. What matters most is knowing your own balance, understanding how it compares to your goals, and taking proactive steps to close any gap.
