For many Australians, superannuation is the nest egg we rely on to fund our retirement dreams—whether that’s a trip around Australia, an overseas adventure, or simply the peace of mind that comes with financial security.
But with the cost of living rising and markets more unpredictable than ever, the big question remains: how much super is enough, and are you on track?
Recent data paints a sobering picture: most Australians approaching retirement age don’t have enough superannuation to retire comfortably.
According to the Association of Superannuation Funds of Australia (ASFA), a single person needs around $595,000 in super by age 67 to enjoy a ‘comfortable’ retirement.
For couples, that figure increases to $690,000. However, the average balances for those nearing retirement fall considerably short, with men aged 55–59 having an average of $301,922 and women aged 55–59 having an average of $228,259 in their superannuation.
That’s a significant gap, especially considering that the ‘comfortable’ standard includes the occasional overseas holiday, regular dining out, and enough to cover health and home maintenance costs.
There are several reasons why many Australians aren’t hitting the recommended targets:
- Market Volatility: Share market ups and downs—like those triggered by global events or trade wars—can erode super balances, especially for those close to retirement who don’t have time to recover from losses.
- Gender Gap: On average, women retire with less super than men, often due to career breaks or part-time work for caring responsibilities.
- Late Start or Low Contributions: Many people don’t start thinking seriously about super until their 40s or 50s, missing out on the benefits of compounding returns.
Here’s a rough guide to what your super balance should look like at different ages if you’re aiming for a comfortable retirement:
Compare these figures to the national averages, and it’s clear that many of us, especially women, are falling behind.
The good news is that the Age Pension is a safety net. From age 67, you may be eligible for a full or part pension, depending on your assets and income. Many retirees use a combination of super and the Age Pension to fund their lifestyle.
If you’re close to retirement, market downturns can be nerve-wracking. Super funds invested in shares can see big swings in value.
However, despite short-term bumps, history shows that balanced super funds have delivered average returns of around 6 to 7 per cent per year over the past decade.
‘The positive is returns have held up not too bad if you look over the long term,’ Kirby Rappell, executive director of SuperRatings, said.
‘The reality is there is going to be more ups and downs. For most people, it’s trying to figure out what they need to do for the long term and try and just block out all the noise to stay sane given it’s just a more uncertain period that we’re in.’
From 1 July, the compulsory employer super contribution (Superannuation Guarantee) will rise to 12 per cent of your ordinary time earnings (up from 11.5 per cent). This means more money going into your super each pay cycle—good news for your future self!
Have you checked your super balance lately? Are you on track for the retirement you want? Share your experiences, tips, or questions in the comments below—let’s help each other make the most of our golden years!
Also read: Terrifying dive ahead? What this superannuation warning means for you
What are the assumptions that were made when compiling these figures ???
Whether they are accurate for an individual will depend on where they live, whether they own their own home or still have a mortgage, or if they are renting !!!!
There’ll always be critics of numbers.
I’m sure if there was no figures published, they’ll be critical of that too.
No one is forcing people to save extra into superannuation; but those that wilfully don’t when they can, shouldn’t expect any sympathy when their pension isn’t enough.