What a difference 20 years can make to your superannuation.
At 50, many Australians are still building their retirement savings, with years of employer contributions and potential investment returns ahead of them. By 70, the focus may have shifted towards making those savings last while enjoying life after work.
But just how different are the average super balances at these two ages? Let's see what the latest numbers are saying:
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The average super balance at 50
According to Australian Prudential Regulation Authority (APRA) data, Australians aged 50 to 54 have an average superannuation balance of $198,000.
This provides a reasonable guide for someone turning 50.
While $198,000 may seem a long way from the amount needed for a comfortable retirement, someone turning 50 still has 17 years before reaching Age Pension age.
That leaves plenty of time for contributions and potential investment growth to improve their position.
It is also worth remembering that many Australians reach their peak earning years during their 50s, which can create opportunities to make extra contributions if household finances allow.
What about at age 70?
Unsurprisingly, the average superannuation balance is higher for Australians aged 70 to 74, reaching $312,000 according to the latest APRA data.
That is $114,000 more than the average for the 50 to 54 age bracket.
It is also worth remembering that many Australians in their 70s have already retired and started drawing down their savings.
This means their balances may reflect years of retirement withdrawals alongside investment returns, rather than simply decades of uninterrupted growth.
Is the average balance enough?
The Association of Superannuation Funds of Australia (ASFA) estimates that a single homeowner needs around $630,000 at retirement to support a comfortable lifestyle, assuming some Age Pension support over time.
For a couple, the estimated combined amount is $730,000.
These benchmarks suggest that someone with an average balance may need to think carefully about their retirement expectations, particularly if they are single or have significant housing costs.
However, the Age Pension, other investments, home ownership, and individual spending habits can all influence how far a super balance stretches.
Final word
Australians approaching 50 have an opportunity to assess their progress while there is still time to make changes.
For someone around 70, the more immediate consideration may be how to manage withdrawals and investment risk while keeping enough money available for later retirement.
The average figures offer a helpful comparison, but retirement readiness ultimately depends on how much income your savings can provide and how long that income needs to last.
