Your late 50s should be when your focus shifts from accumulating your super to working out how and when you'll access it.
After all, at the age of 58, you're just two years from your preservation age. This is when you can start accessing your super if you've stopped working.
While it's possible to retire this early, many Australians wait until they're in their mid-60s or even early-70s to retire. By this point, you can access your superannuation regardless of whether you've stopped working or not, and you could also potentially be eligible for the Age Pension.
The question is, how much do you actually need in your superannuation before you can retire? And how do you know if you're on track with the rest of the population?
Here's a breakdown of what the average Aussie has at age 58, and what you actually need to retire comfortably in the next few years.
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What is the average superannuation balance at age 58?
There isn't an exact figure for the average superannuation balance at age 58, but the Association of Superannuation Funds of Australia (ASFA) has a good guideline.
ASFA's data shows that at age 55 to 59, the average Australian male has around $319,743 in superannuation. The average female the same age has approximately $242,945.
So, how does your balance compare to the average Aussie the same age?
The catch is, even if you're on track with the rest of the population, you still might not have enough to fund a comfortable retirement when the time comes.
How much does a comfortable retirement actually cost?
The majority of Australians will aim to live a comfortable retirement lifestyle. That's one that enables retirees to maintain a good standard of living throughout their retirement years.
A comfortable retirement is one in which you have funds to pay for top-tier private health insurance and regular leisure activities. You'd have enough money to pay for home repairs or renovations, and perhaps even an annual holiday.
ASFA data shows that a comfortable retirement will cost around $55,923 per year for singles and $78,566 for couples. Again, it assumes you'll receive a part Age Pension and that you own your home in full.
That means ASFA's data indicates that by age 67, single Australians need a superannuation balance of approximately $630,000. And couples should have closer to $730,000.
Is my average superannuation balance on track to meet this figure?
Unfortunately not.
If your superannuation is in line with the rest of the population, then you'll be able to afford a very basic and modest retirement lifestyle from the age of 67.
It could cover things like basic health insurance and home repairs, but wouldn't leave much room for leisure activities or meals out, let alone a holiday.
But if you're expecting to live a retirement lifestyle beyond the basics, you're already falling far behind.
In fact, I've crunched the numbers, and at age 58, you should have around $456,500 in your superannuation.
This is around $137,000 to $214,000 more than what the average person has at the same age.
And if you're planning to retire earlier than age 67, then you'll also need to account for the cost of those extra years.
Help! How can I boost my balance before it's too late?
At age 58, there are a few things you can do to boost your superannuation to where you want it.
Focus your attention on making extra contributions however you can. Individuals can make concessional (before-tax) super contributions, such as salary sacrificing, which are taxed at a reduced rate. You can also make after-tax payments within your annual limits.
It is also a good idea to check in with Government contribution rules to see if you're eligible for any under your personal circumstances. After all, every dollar counts when it comes to compounding growth!
