Millions of Australians are relying on their superannuation to support them in retirement, yet many could find their savings fall below what they need for a comfortable lifestyle.
A healthy super balance can play a major role in retirement, helping cover regular household expenses, medical bills, leisure activities and unexpected costs after full-time work ends.
Checking how your superannuation compares with balances held by people in the same age group can offer a useful guide. Figures from the Association of Superannuation Funds of Australia (ASFA), published by Rest Super, show average super balances by age and gender.
In your 40s
Men aged between 40 and 44 had an average superannuation balance of $140,680, compared with $109,209 for women in the same age group.
Among Australians aged 45 to 49, men held an average of $193,501 in super, while the average balance for women was $147,146.
In your 50s
For those aged 50 to 54, the average super balance stood at $254,071 for men and $190,175 for women.
Millions of Australians are counting on their superannuation savings to deliver a comfortable retirement, but many may not be on track.
Adequate superannuation can significantly improve quality of life in retirement, helping pay for essentials, healthcare, hobbies, travel and unexpected expenses.
The average superannuation balance for men aged 55 to 59 was $319,743. For women in that age bracket, it was $242,945.
In your 60s
Australians aged 60 to 64 had average balances of $395,852 for men and $313,360 for women.
By age 65 to 69, men had an average super balance of $448,518, compared with $392,274 for women.
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How much super will you need in retirement?
ASFA assesses retirement needs using two key benchmarks: a modest retirement and a comfortable retirement.
The comfortable retirement standard goes beyond covering the basics. It is intended to support everyday living costs while also allowing retirees to enjoy travel, hobbies and social activities.
ASFA estimates that a single homeowner needs $55,923 a year for a comfortable retirement. Homeowner couples require an estimated $78,566 annually.
ASFA figures published by Rest Super outline average superannuation balances across different age groups and between men and women.
ASFA defines a modest retirement as a lifestyle slightly above what can be achieved through the Age Pension alone. It includes basic private health insurance, along with occasional social, leisure and recreational activities.
For a modest retirement, ASFA says single homeowners need $36,434 a year, while homeowner couples need $52,473 annually.
How to catch up on your super
Rest Super says workers may want to consider making voluntary contributions in addition to their employer’s compulsory super payments, depending on their personal circumstances.
Regular extra contributions, even relatively small ones, may grow through compound investment returns over time. However, investment returns are not guaranteed.
Rest Super also recommends reviewing super fund fees and investment performance regularly. Small differences in costs and returns can make a substantial difference to retirement savings over several decades.
Rest Super says consolidating multiple accounts may help some members avoid duplicate fees and insurance premiums, but warns they should first check whether they would lose insurance cover or other benefits.
The figures are general benchmarks only and do not take into account individual circumstances. Australians should consider seeking licensed financial advice before making major changes to their superannuation.
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