The age of 50 is a great time to check in on your superannuation balance, see if you're on track for a comfortable retirement, and implement strategies to catch up if needed.
Unfortunately, the figures show that the average person has less superannuation at age 50 than they need to achieve a comfortable retirement by age 67.
The way this is calculated is by using figures supplied by the Association of Superannuation Funds of Australia (ASFA), which has calculated estimates of how much superannuation people have, and comparing them against the amounts which ASFA says is needed to be on track.
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So how much superannuation do people generally have at age 50?
The ASFA figures indicate that men aged 50-54 have on average $254,071 in their superannuation, while women of the same age have $190,175.
So how much should people who are 50 have in their superannuation to be on track for a comfortable retirement?
ASFA also has a Super Detective calculator, where you can input your age and discover what your superannuation balance should ideally be.
For people aged 50 it comes out as $313,500, well above the average figures.
Keep in mind this is targeting a comfortable retirement as defined by ASFA, which involves retiring at 67, owning your own home and drawing a part pension.
It assumes singles will have $630,000 in their superannuation, which in combination with the part pension will deliver an income stream of $55,923 per year.
A comfortable retirement by ASFA's definition includes the ability to afford top level private health cover, to own and maintain a reasonable car and to enjoy regular leisure activities and occasional travel.
What if your balance is coming up short?
Extra contributions can be made to superannuation in the form of concessional and non-concessional contributions.
Concessional contributions are taxed at just 15% and include money contributed by your employer, salary sacrifice contributions, and extra contributions you make up to a cap of $32,500.
If funds permit and your superannuation balance is less than $500,000 in the last financial year, you can also carry forward any unused concessional contribution cap amounts from the previous five financial years.
The amount you are able to contribute in this way can be found in your myGov account.
A notice of intent to claim must be lodged with your super fund for concessional contributions so they know to deduct the 15% tax from the amount.
It is also possible to make non-concessional contributions up to $130,000 and to contribute more than this amount using the bring-forward rule.
