Superannuation is most likely front and centre for Australians in their mid-60s.
At age 66, Aussies have passed their preservation age (age 60), passed the average retirement age (age 65), and are just one year away from receiving their Age Pension payments (age 67, if eligible).
That means that at the age of 66, it is a great time to start living your dream retirement lifestyle.
But only if you have enough money in your superannuation.
After all, the balance you need at any retirement age depends entirely on your living situation, financial situation, and the lifestyle you want to live when you finally stop working.
Do you want to retire comfortably at age 66? Let's break down what that might look like and how much money you'll need.
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What does a comfortable retirement lifestyle look like?
In Australia, retirement is generally split into two broad categories: comfortable and modest.
According to the Association of Superannuation Funds of Australia (ASFA), a comfortable retirement is defined as one that enables retirees to maintain a good standard of living well beyond the age pension. It budgets for expenses beyond a modest retirement, including top-tier private health insurance and regular leisure activities. It allocates funds for home repairs or renovations, and perhaps even an annual holiday.
Meanwhile, a modest retirement is defined as being able to cover expenses just slightly above what the full Centrelink Age Pension would provide from age 67.
How much does it cost to retire comfortably?
ASFA estimates that a comfortable retirement costs around $55,923 per year for single Australians, and $78,566 for a couple.
These figures also assume you'll receive a part Age Pension, that you own your home in full, and that you'll be able to plan and stick to your financial goals. It would also be wise to have an emergency fund set aside.
What do I need in my superannuation by age 66 to be able to afford that?
In order to fund a modest comfortable retirement, ASFA calculates that single Australians will need around $630,000. Meanwhile, couples will need around $730,000.
But, note that this figure assumes you'll access your superannuation from age 67. It also assumes you'll need to fund around 10 years of a comfortable retirement.
If you're planning to retire slightly earlier, at age 66, it would be wise to factor in one additional year of retirement.
I've crunched the numbers using ASFA's figures to work out what you should aim for. Singles should have closer to $686,000 in their superannuation and couples closer to $809,000 at age 66.
Remember also, that if you don't own your home outright, you'll also need to consider how you'll pay your mortgage or rent on top of your other bills.
