While the amount of superannuation you need for retirement depends on a number of factors, it's safe to assume most of us are aiming for a comfortable retirement.
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How much is needed?
That might mean different things to each of us, but a good starting point is the Retirement Standard published by the Association of Superannuation Funds of Australia (ASFA).
The Standard, which is updated each year, currently pegs the amount retirees need for a comfortable retirement at $56,166 for a single person and $78,998 for a couple.
Their definition of a comfortable retirement includes being able to afford top-level health cover, own and maintain a reasonable car, afford regular leisure activities and occasional travel, and maintain their home.
The Standard also assumes a retiree owns their own home and will draw a part pension from the age of 67.
Those figures are useful for people on the cusp of retirement, but what about earlier? How can you tell whether your superannuation savings are on the right track?
Well, ASFA also has a tool called the Super Detective, where you can input your age, and it will tell you what you should have in your super to be heading in the right direction.
For someone earning $75,000 per year, their superannuation balance should be close to $146,000, ASFA says.
For someone earning $100,000, it should be $103,000.
How much do people actually have in their superannuation?
Other figures published by ASFA show that men aged 40-44 had on average $140,680 in their superannuation, while women had $109,209.
If you're looking to top up your superannuation, a potentially tax effective way to do so is via salary sacrifice, or concessional contributions.
Salary sacrifice contributions come out of your pre-tax earnings and are paid into your superannuation by your employer, where they are taxed at 15%.
A concessional contribution is essentially the same, but paid as a lump sum.
If a concessional contribution is made, a notice of intent to claim must be lodged with your superannuation fund, which will then take the 15% tax out.
Contributions including employer contributions, salary sacrifice and concessional contributions up to a maximum of $32,500 can be made in each year.
Added to this, and unused concessional contribution cap amounts for the past five years can also be used.
Non-concessional contributions up to a cap of $130,000 per year can also be made, and under the "bring-forward" rule, this can be extended out to $390,000.
The impact of extra contributions can be large. If a person contributes an extra $10,000 per year from the age of 40 to 60, the extra amount in superannuation at that time would be $230,089.
