If you are 55 and wondering whether your superannuation is on track, you are not alone.
It is one of the most common questions Australians ask.
The good news is that there are clear benchmarks to aim for. The less good news is that many people fall short.
Let's break it down.
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What a comfortable retirement actually costs
The most widely used benchmark comes from the ASFA Retirement Standard.
This tool estimates what retirees actually spend.
According to this standard, a single homeowner needs about $54,240 a year for a comfortable lifestyle. A couple needs roughly $77,375 a year.
To fund that, ASFA suggests a lump sum of around $630,000 for a single person.
Couples need about $730,000 between them.
Both figures assume you own your home and draw a part Age Pension.
How much superannuation you need at 55
Here is the important part.
Those targets apply at retirement age, which is typically 67. At 55, you still have time on your side.
You generally cannot access your superannuation until age 60, and the Age Pension does not kick in until age 67.
So a 55-year-old has roughly a decade of compounding still to come.
That is quite important. Money invested today has years left to grow. A balance that looks light at 55 can still reach the target by 67.
The catch is that many Australians are behind.
Typical balances in the 55 to 64 age bracket sit well below the ASFA figure.
Building your superannuation from here
If you are behind, you have several levers to pull.
Salary sacrificing extra into superannuation is one of the most powerful. Concessional contributions are taxed at just 15% for most people, which is well below most marginal tax rates.
Making sure your money is invested sensibly is just as important. Many funds let you choose your investment mix.
Some investors also hold ASX shares and funds directly.
One popular option is the Vanguard Australian Shares Index ETF (ASX: VAS). This ETF tracks the 300 largest companies on the ASX, giving you instant diversification in a single trade.
VAS also pays regular dividends, which can be reinvested to compound over time.
Low-cost index funds like VAS are a common building block for growth-focused portfolios.
They are simple, cheap, and broadly diversified.
Foolish Takeaway
So how much superannuation does a 55-year-old need?
Aim for the path to roughly $630,000 as a single, or $730,000 as a couple, by age 67.
The exact number depends on your lifestyle, health, and whether you own your home.
At 55, the decisions you make now still count for a lot.
Contribute more where you can. Invest for growth while you still have time. And check in on your superannuation regularly.
