Superannuation is one of those topics most Australians rarely discuss openly.
Many people assume they are about average, but without real context, that assumption can be misleading.
So how does your superannuation balance really compare with other Australians at different life stages, and what does normal actually look like?
The average superannuation balances
According to data from Association of Superannuation Funds of Australia (ASFA), as you would expect, super balances rise steadily with age.
In the early years, balances are understandably modest. Australians aged 18–24 hold average balances of $8,163 for women and $9,062 for men. Even by the late 20s, the average balance is still only $24,821 for women and $27,021 for men.
By ages 30–34, average super balances rise to $46,586 for women and $55,690 for men. This increases further in the late 30s, with balances hitting $76,020 for women and $96,122 for men at ages 35–39. This is typically the stage where compounding is only just beginning to take hold.
Australians aged 40–44 average $109,209 for women and $140,680 for men. By ages 45–49, balances lift to $147,146 and $193,501, respectively, as higher incomes and longer contribution histories start to come through.
In the early 50s, average balances rise again to $190,175 for women and $254,071 for men. By ages 55–59, Australians hold an average of $242,945 in super for women and $319,743 for men.
As retirement approaches, the averages for Australians aged 60–64 are $313,360 for women and $395,852 for men. And at ages 65–69, the averages are $392,274 and $448,518, respectively.
What does that mean for retirement?
This is where context really matters.
According to the ASFA, a comfortable retirement currently requires around $595,000 in superannuation for a single person, or approximately $690,000 combined for a couple who own their home outright.
ASFA defines a comfortable retirement as one that allows retirees to enjoy a good standard of living, including private health insurance, regular social and leisure activities, dining out, and occasional domestic and international travel.
By contrast, a modest retirement requires far less. ASFA estimates that both singles and couples require around $100,000 in super, assuming they also receive some level of age pension.
A modest retirement covers basic living costs and essentials, with limited discretionary spending and fewer lifestyle extras.
Based on ASFA's numbers, most single Australians fall short of having enough superannuation for a comfortable retirement. But rest assured, the average couple is on track to achieve this goal.
Foolish takeaway
Knowing whether your superannuation balance is normal for your age is a useful starting point, but it shouldn't be the end of the conversation.
The more important question is whether your balance, combined with the time you have left in the workforce, is on track to deliver the lifestyle you want. The earlier you understand the gap between average and comfortable, the more options you have to close it.
