Here’s what your superannuation balance should be right now based on your age bracket
Millions of Australians rushed to access their super early and soften the blow of COVID-19, but it could have devastating long-term effects. USE OUR TOOL TO LEARN YOUR BALANCE
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Super fund members are being urged to check if they are on track for retirement after new figures revealed exactly how much money they should have in their accounts.
Data from the Association of Superannuation Funds of Australia showed Australians needed the following amounts in super to be heading for a comfortable retirement:
• A 30-year-old should have $61,000.
• A 40-year-old $154,000.
• A 50-year-old $271,000.
• A 60-year-old $430,000.
These amounts are to achieve a comfortable retirement at age 67 when singles should have $545,000 in retirement savings and couples $640,000.
That equates to an annual pre-tax income of $65,000 and with investment returns at 6.7 per cent.
A comfortable retirement enables a healthy retiree to have a good standard of living including top level private health insurance, travel on domestic and international holidays, own a reasonable car and have a good internet service and mobile phone allowance.
ASFA’s chief executive officer Dr Martin Fahy says it is important that Australians pay attention to their balances because “super plays a critical role in helping Australians achieve the standard of living in retirement that they want and deserve”.
“If today’s young people are to avoid ending up on not much more than the Age Pension, every single dollar contributed to superannuation counts.”
Under the Federal Government’s early access to superannuation scheme about 2.89 million people have withdrawn about $35.9 billion, decimating many account balances.
Compulsory super payments are scheduled to rise from 9.5 per cent to 10 per cent in July, then up to 12 per cent by 2025.
The move had resulted in intense political debate and challenges could be made to stop the scheduled legislated increases from going ahead.
In recent weeks millions of Australians have begun receiving their annual super statements from their funds.
AustralianSuper group executive of membership Rose Kerlin — whose fund is one of the largest with has 2.3 million people on its books — said members should be paying attention to their balances and taking action to bolster their savings.
“The most important thing you should check with your super fund is the performance of your super fund and what fees are, make sure you’re in a high performing fund with lower fees,” she said.
“Boosting your super with voluntary contributions is a great way to help reach your goals.”
Ms Kerlin also said salary sacrificing was important allowing members to put some of their salary straight into their super account instead of bank account.
“This has a double benefit, you pay less tax and it reduces your taxable income.”
AustralianSuper data shows the average balance for a 30 to 39-year old female is $38,000 and male $48,000.
For those aged 50 to 59 their data found the average balance for a female is $104,000 and a male $152,000.
Originally published as Here’s what your superannuation balance should be right now based on your age bracket