It's important to keep on top of how much is in your superannuation at every milestone. How else can you make sure you're on track with your retirement goals?
At age 65, many Australians have either already begun or are very close to retirement. By this age, you can access your superannuation balance regardless of whether you've decided to stop work or not, and you're just two years away from potentially receiving the Age Pension payment too.
So, do you know how your super balance compares to other Aussies the same age?
And do you know how much money you actually need to be able to retire?
Let's break it down.
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What is the average superannuation balance of Australian men aged 65 in FY27?
There isn't an exact figure for the average superannuation balance for men at age 65, but the Association of Superannuation Funds of Australia (ASFA) provides a helpful guide.
The average 65 to 69-year-old Australian male in FY27 has an average superannuation balance of $448,518.
What is the average superannuation balance of Australian women aged 65 in FY27?
Unfortunately, women the same age have a lot less.
The average 65 to 69-year-old Australian female has an average superannuation balance of around $392,274 in FY27. That's a gap of over $56,000 compared to men the same age.
The gap is mostly due to women taking extended periods out of the workforce, during which time they earn lower, or even no, compulsory employer superannuation.
How does your super balance stack up with men and women the same age as you?
And most importantly, how does your balance compare with what you actually need to retire comfortably?
How do these balances compare to what I actually need 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.
In order to fund a comfortable retirement, ASFA calculates that single Australians will need around $630,000 in their superannuation at age 67.
Couples will need around $730,000 combined at the same age.
Is my superannuation on track?
To be able to meet this goal, ASFA forecasts that all Australians should have around $604,500 in their superannuation by the time they reach age 65.
How does your superannuation balance compare now?
I think my balance is falling behind. What can I do?
Even at age 65, it's not too late to try to boost your balance before you stop working.
It's best to start by making additional contributions to your superannuation. Take advantage of additional concessional or non-concessional contributions, and this can be done via salary sacrifice or by making after-tax payments (provided they're within your annual limits).
If you're eligible, there are also government initiatives available that could help you bridge the gap between the superannuation balance you have and what you need.
