How does your superannuation balance compare with other Australians approaching retirement?
It is a question worth asking, particularly as you get closer to finishing work and enjoying your retirement.
So, let's look at the latest figures for Australians aged around 57 and 67.
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What's the average super balance at 57?
According to the latest Australian Prudential Regulation Authority (APRA) figures, Australians aged 55 to 59 have an average superannuation balance of $243,300. This gives us a reasonable guide for someone aged 57.
At this stage, retirement may be getting closer, but there could still be plenty of opportunities to increase your savings.
Someone planning to retire at 67, for example, would have another decade of potential investment returns and superannuation contributions ahead of them.
Those final working years could make a considerable difference, particularly if earnings are higher than earlier in their career.
Making additional contributions, where affordable and within contribution limits, could also help improve their retirement position.
How much super does the average 67-year-old have?
By age 67, things look a little different. APRA's latest figures show that Australians aged 65 to 69 have an average superannuation balance of $290,600.
That is approximately $47,300 more than the average for Australians aged 55 to 59.
However, there is something important to remember when comparing these numbers. Many Australians in their late 60s have already retired and started accessing their superannuation.
Their balances may reflect a combination of investment returns and retirement withdrawals.
How much super is enough?
Of course, knowing the average balance is only part of the story.
The more important thing to know is whether those savings will provide enough income to enjoy retirement.
The Association of Superannuation Funds of Australia (ASFA) estimates that a single homeowner needs approximately $630,000 in retirement savings at age 67 to support a comfortable retirement.
For couples, ASFA estimates that a total combined balance of $730,000 is required for a comfortable retirement.
Both estimates assume they receive some Age Pension support over time.
These figures are considerably higher than the average super balance reported by APRA for Australians aged 65 to 69, although the couples' target represents combined savings.
Someone who owns their home outright and qualifies for the Age Pension may need considerably less than someone who is renting or hoping to fund a more expensive lifestyle.
For Australians approaching 57, these figures could provide a good reason to review their superannuation strategy while there is still time to make changes.
And for those approaching 67, understanding their expected spending, other savings, and potential Age Pension entitlement could help determine how far their superannuation will go.
