Once you reach your mid-50s, your superannuation balance should be front and centre in your mind.
With roughly around 10 years to go until retirement, your superannuation balance could be the main thing which separates a comfortable lifestyle from one where you can only scrape by.
The problem is, at age 54, many Australians don't know what their balance should look like.
Here's a breakdown to help.
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What is the average superannuation balance of Australians at age 54?
There aren't exact figures, but these ballparks can help to provide a good guide.
According to Association of Superannuation Funds of Australia (ASFA) data, the average Australian female aged 50-54 have around $254,074 in their superannuation.
The average 50-54 year-old female has a lot less, at around $190,175.
At age 54, however, you're sitting right at the top of that bracket. So you'd want your superannuation balance to be somewhere between that figure, and the figure for the age bracket above.
Data shows that the average 55-59 year-old male has around $319,743 and females in the same age bracket have closer to $242,945.
You'll notice that there is quite a large difference between the average superannuation balances of men and women in their 50s.
This is the result of several factors, including taking time out of the workforce to raise children, fewer hours and lower overall incomes, and women taking on a greater amount of unpaid work at home.
But the key problem is, none of these average superannuation balances are anywhere close to what Australians need to be able to afford a comfortable retirement when the time comes.
How much will a comfortable retirement cost me?
It's worthwhile to see how your superannuation balance compares to others the same age, but you really need to compare it to what you actually need instead.
According to ASFA, a comfortable retirement will cost around $54,840 per year for singles and $77,375 per year for couples.
This amount means you should be able to afford to maintain a good standard of living. It assumes you'll have top level private health insurance, own a reasonable car and partake in the occasional meal out or domestic trip.
What do I need in my superannuation to be able to afford that?
To fund $54,840 per year for singles and $77,375 per year for couples in retirement, you'll need a superannuation balance of at least $630,000, or a combined $730,000 if you're a couple.
In order to reach that figure, you'd need a balance of $382,000 at age 54, regardless of whether you're a male or female.
This figure is a lot higher than the ones we discussed above, in some cases by nearly $200,000.
Also, keep in mind that this will fund around 9.5-11.5 years of retirement. So if you're planning on retiring early, or think you'll need to fund more years, you'll need to have even more.
What can I do right now to catch up?
The most important thing you can do today is ensure your superannuation is with a well-performing fund. Its also crucial to check that you're investments reflect a risk profile that's suitable to you.
After you've made sure that the money that's already in there is working as well as possible, you can think about adding additional funds such as salary sacrifice or after-tax contributions to boost your balance.
