Do you know if you have enough money in your superannuation account to retire in your 60s? Or how your superannuation compares to others the same age?
Here's a run-through of the average superannuation balance of Australians aged 57.
How does yours stack up?
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What is the average superannuation balance for Australian men aged 57?
There aren't exact figures, but brackets determined by the Association of Superannuation Funds of Australia (ASFA) provide a good guide.
The data shows that the average Australian male aged 55 to 59 has around $319,743 in their super.
What about the superannuation balance for women the same age?
Women the same age have quite a lot less. The average balance for Australian women aged 55 to 59 is $242,945. That's a gap of around $76,000.
The lower balance is usually because women typically take time out of the workforce to raise children or work fewer hours. They also tend to have lower overall incomes.
Is it enough to live a comfortable lifestyle when I want to retire?
Here's the bad news. Even if your superannuation is on track with the rest of the population around the same age, it might not actually be enough to retire on.
Especially if you want to live a comfortable retirement lifestyle.
ASFA retirement standard figures calculate that a comfortable retirement will cost single Australians approximately $54,840 per year. For couples, it'll cost around $77,373.
In order to afford that, singles will need a superannuation balance of around $630,000, and couples will need around $730,000. These figures assume you'll also get a part-Age Pension payment.
I've crunched the numbers, and Aussies aged 57 will need a superannuation balance of around $439,000 in order to meet that balance before retirement.
You'll note that this is up to $196,000 more than the balance of average Australians the same age.
Do you have any tips to boost my superannuation balance before it's too late?
The good news is that, at age 57, there are still several things you can do to turbocharge your superannuation balance before you retire.
My first advice is always to check that your super fund is performing well and that your investment strategy and risk profile match your own. There isn't much use in adding additional funds until your super fund is working efficiently.
Next is time to add extra contributions wherever you can. Individuals can make concessional (before-tax) super contributions, such as salary sacrificing, taxed at a reduced rate of 15% and up to an annual cap. You can also make after-tax payments within your annual limits.
Government contributions might also be available depending on your personal circumstances. There is a downsizer contributions rule, a bring-forward rule, a government co-contribution rule, and many others.
If you've done all these things and your superannuation balance still doesn't stack up, another option is to delay your retirement. If you think about it, retiring in your early 70s rather than mid-60s gives you an extra five or so years of income and compound growth.
