Turning 50 is often the moment many Australians begin thinking more seriously about retirement.
While there is still plenty of time to grow your nest egg, this is usually the stage when people start comparing their super balance to others their age and wondering whether they're on track.
Because super isn't something most people openly discuss, it can be difficult to know whether you are ahead, behind, or somewhere in the middle.
Thankfully, Rest Super provides data that helps us estimate what the average 50-year-old Australian has saved.
Here's what the numbers show, and what they might mean for your retirement outlook.
What is the average superannuation balance at 50?
Rest Super publishes balances in five-year age brackets, which means we need to use the surrounding figures to estimate the average for Australians aged 50.
For women, the average balance is $136,667 at ages 45–49 and $176,824 at ages 50–54.
For men, the average is $180,958 at ages 45–49 and $237,084 at ages 50–54.
Using these figures as a guide, the estimated average super balance at age 50 is approximately:
- Women: $157,000
- Men: $209,000
Is this enough for a comfortable retirement?
The Association of Superannuation Funds of Australia (ASFA) estimates that a single retiree needs about $595,000 for a comfortable retirement, and couples need around $690,000 combined.
ASFA defines a comfortable retirement 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.
Based on the Rest Super calculator, a 50-year-old woman with $157,000 today and a $70,000 annual salary could retire with around $369,000. Whereas a man with $209,000 could finish with about $443,000.
Combined, that is around $812,000, meaning the average couple is on track to exceed ASFA's comfortable benchmark. For singles, though, there is still a gap.
But singles could still enjoy a modest retirement, with ASFA estimating that both singles and couples need $100,000, assuming they own their own home. If they are renting, a single person needs $340,000 and a couple needs $385,000 for a comfortable retirement. It is defined as:
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.
What if your balance is lower than the average?
If your super balance is behind where you would like it to be at 50, all is not lost. You still have 15–17 years until retirement, which is plenty of time to make meaningful progress.
Some strategies Australians often consider include salary-sacrificing, personal concessional contributions, reviewing fund performance, and ensuring fees aren't eroding returns. Even small improvements can compound surprisingly quickly over the next decade and a half.
Foolish takeaway
Knowing the average superannuation balance at 50 can be helpful. But your own retirement ultimately depends on your goals, lifestyle expectations and the actions you take from here.
Whether you're ahead of the average or still building toward it, the important thing is having a clear plan, and making each remaining working year count.
