Once you reach your mid-60s, your superannuation should be high on your priority list. After all, at this age, retirement has either begun or is just around the corner.
At age 66, you've reached the milestone for unconditional superannuation access (meaning you can access your balance regardless of whether you've stopped working or not). You're also just one year away from accessing the Age Pension payment if eligible.
That means, by this point in your life, you should know exactly how much super you have saved and what you need to be able to live the type of retirement you want.
Here's a breakdown of the average superannuation balance of Aussies aged 66, and what you actually need at this age to retire.
How does yours compare?
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What is the average superannuation balance at age 66 in Australia?
There isn't an exact figure for the average superannuation balance for men at age 66, but the Association of Superannuation Funds of Australia (ASFA) provides a helpful estimate.
The average 65 to 69-year-old Australian male in FY27 has an average superannuation balance of $448,518.
Unfortunately, women the same age have a lot less, mostly because women tend to take extended periods out of the workforce. There are periods of time, sometimes spanning several consecutive years, where women earn lower compulsory employer superannuation or none at all.
The average 65 to 69-year-old Australian female has an average superannuation balance of around $392,274 in FY27.
How does your super balance stack up with men and women the same age as you?
If your superannuation balance is on track with the rest of the population, that's great news. But unfortunately, it doesn't actually mean you have enough to live the retirement lifestyle you want.
How much superannuation do I need to retire at age 66?
According to the latest ASFA Retirement Standard, the benchmark for a comfortable retirement is around $55,923 per year for single Australians and closer to $78,566 per year for couples.
To support that level of spending, ASFA estimates you'll need a super balance of roughly $630,000 as a single and $730,000 as a couple by the age of 67.
The figures also assume you own your home outright and that you're receiving the age pension.
Am I on track?
In order to reach that number, ASFA calculates that at the age of 66, for a comfortable retirement, Australians should have a current superannuation balance close to $604,500.
That's significantly higher than the average balances for Australians aged 65 to 69.
Why is the average Australian so far behind?
Unfortunately, there are several reasons.
In some exceptional cases, it's possible to access your superannuation early. For example, to pay certain expenses on compassionate grounds, as well as terminal illness, incapacity, and severe financial hardship.
There was an uptick in the number of Australians who applied for an early release during the COVID-19 pandemic, driven by soaring cost-of-living and widespread income loss.
The problem is that accessing your superannuation early severely affects long-term compounding growth and lowers balances in the long term.
At the same time, ongoing economic volatility and consistently high cost of living also mean that individuals have severely curbed the amount of voluntary contributions going into super fund accounts.
High fees and poor performance also eat into retirement savings. Meanwhile, sticking with an underperforming fund or default option is a mistake that can cost your super balance over time.
