For many 30-year-olds, thinking of planning for retirement is probably not close to top of the to do list.
That's understandable – accessing their superannuation is at least 30 years off and they have plenty of time to think about it in the intervening period.
That said, a little goes a long way in terms of the benefits of compound interest, and relatively modest additional contributions to superannuation can have a big impact over that time.
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What do the numbers say?
So how much superannuation does the average 30-year-old have?
The most recent figures from The Association of Superannuation Funds of Australia (ASFA) show males aged 30 to 34 have $55,690 in superannuation on average, while females have $46,586.
ASFA also has a resource which allows you to plug in your age and see what superannuation balance is preferable if you are aiming for a "comfortable" retirement.
This figure for a 30 year old is about $70,500, which as you can see, is considerably higher than the average person has accrued at that age.
This calculator assumes a pre-tax wage income of $63,000, and a lump sum at retirement of $630,000 in today's dollars.
The ASFA comfortable lifestyle standard assumes that for those who own their own home, a comfortable lifestyle would need an income of $54,840 for singles and $77,375 for couples.
A comfortable retirement includes top level health insurance, being able to own and maintain a reasonable car, regular leisure activities, and an ability to pay bills as they fall due.
Superannuation strategies
So how can you boost your super if you're looking to ensure a comfortable retirement?
Firstly, if you're a low or middle income earner, you can make a personal non-concessional (after tax) contribution to your super fund, and the government might also make a co-contribution of up to $500.
The Australian Taxation Office website says:
The government co-contribution you receive depends on your income and how much you contribute. You don't need to apply for the super co-contribution. When you lodge your tax return, we will work out if you're eligible. If your super fund has your tax file number (TFN), we will pay it to your super account automatically.
The government also has a super co-contribution calculator which can be used to assess what you are eligible for.
Another way of boosting superannuation balances is via concessional contributions.
This involves making extra payments out of salary before it is taxed, with the contributions taxed at 15% when they enter the super account.
Up to $30,000 can be paid into superannuation each year via this method, however keep in mind that employer's contributions count towards the total.
Concessional contributions can also be tracked by using the ATO's online services and logging into your account.
