Your early-60s are a turning point for your superannuation, as this is when your focus shifts from wealth accumulation to preservation.
By age 63, you've passed your preservation age (60 years old), which means you can access your superannuation if you've quit working.
And you're just four years away from potentially receiving the Age Pension.
The question is: How does your super compare to others your age?
And is it enough to retire on?
Let's take a look.
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The average superannuation balance for Australian men aged 63 in FY27
There aren't exact figures for the average balance at age 63, but the Association of Superannuation Funds of Australia (ASFA) provides a good starting point.
The data shows that the average Australian male aged 60 to 64 has around $395,852 in their superannuation.
And the average superannuation balance for Australian women the same age
Women in the same age bracket have a lot less. The average balance for Australian women aged 60 to 64 is around $313,360. That's a gap of around $83,000 compared to men the same age.
That's because women are more likely to take extended periods out of the workforce. Whether that's for a career break, to have children, or to care for family. Overall, women are more likely to have periods where they receive little to no compulsory employer superannuation.
Time out of the workforce or reduced hours means women don't get the same benefit from compounding, which overall contributes to a lower super balance.
How does your super balance stack up with men and women the same age as you?
And most importantly, have you got enough to retire on?
How much does it cost to retire?
ASFA estimates that it'll cost single Australians around $55,923 per year to retire comfortably. Couples living together will need to have closer to $78,566 per year combined to finance a comfortable retirement.
These figures also assume you'll start your retirement at age 67. It also assumes that you'll receive a part Age Pension around this time and that you own your home outright.
How do I know if I'm on the right track?
In order to fund a comfortable retirement, ASFA calculates that single Australians will need around $630,000 in their superannuation at age 67. Meanwhile, couples will need around $730,000 combined at the same age.
To reach this goal, at 63, all Australians should aim to have around $562,000 stashed away in their superannuation.
As you can see, the amount you need to retire comfortably is significantly higher than the $395,852 or $313,360 average superannuation balances at the same age.
Why is the gap so large?
A quick calculation shows that the average Australian is behind by up to $249,000 at age 63.
Part of the reason is that Australia's compulsory Superannuation Guarantee only began in 1992. That means many people aged around 63 probably didn't earn any super through their early working lives.
There is also a common misconception that accumulating superannuation alone is enough to be able to fund retirement. The reality is, while superannuation is a great tool to help, you need to contribute extra if you want to reach your goal.
The power of compounding returns means the more money you can invest when you're younger, the more impact it will have on your final balance.
