What is the average superannuation balance by age?

The average superannuation balance as per figures released by ASFA as of July 2019 is shown in the table below:

While checking the average superannuation balance in Australia, you should remember that it may be higher or lower depending on your personal situation and needs. 

There can be several reasons if the current balance in your super is lower than the average for your gender and age group. It may be because you took time off from working for further studies, travelling, or caring for an older relative. It can also be because you were working part-time or earning lower than others in your age group or have been unemployed.

Women typically have lower superannuation balances due to the gender super gap. Keep in mind that if you or a partner take time off for caretaker purposes, such as maternity leave, you can consider spousal super contributions to help close this gap.

According to AMP,

• The annual budget for a comfortable retired life for couples and individuals aged around 65 would be $62,828 and $44,412, respectively.
• For a modest lifestyle, couples would need around $40,829 while an individual would require approximately $28,254 per annum.

 The average budget needed to fund your retirement

This depends on multiple factors, such as your regular expenditure, outstanding loans and savings, investments, inheritance, or whether you are receiving the government’s Age Pension. 

The above numbers are based on the assumption that they own their house and are healthy. To know exactly how much you would need based on your situation, you can use an online retirement needs calculator.

Another way to estimate how much you’ll need during your retirement is to refer to the benchmark provided by the Organisation for Economic Co-operation and Development. According to this benchmark, you’ll need about 70 per cent of your pre-retirement income every year to sustain your lifestyle.

If you notice that your potential average superannuation balance at 67 won’t be as high as needed, here are some ways to boost it:

If you’ve changed jobs, worked casually or part-time, or changed your address or name, there’s a possibility you may have lost track of your super and are paying multiple fees for various accounts.

Even a small difference between the performances of two funds can affect the returns over the years. Consider moving to a top performing fund to earn higher returns and accumulate a higher balance in your super.

Some ways to boost your super balance include salary sacrifice, non-concessional contributions, and government co-contributions. Consult a financial advisor to know the best option for your situation.

Higher fees reduce your super’s growth, and ensuring you aren’t paying too much is important. You can check the fund’s profile tab to see the fees you’re paying.