How much superannuation should I have for my age?

How much superannuation should I have for my age?

As of July 2014, employers have been required to contribute 9.5% into super, however individuals are able to contribute further.

Whilst there is no magic age to start planning for retirement, the simple answer is the earlier you start, the more chance you have to achieve the retirement you dream of. This really comes into play because of the compounding interest effect and how powerful it can be.

According to The Association of Superannuation Funds of Australia’s (ASFA) Retirement Standard, a couple expecting a comfortable retirement will need an average of $60,457 a year.

The longer a person has secured super contributions and associated investment earnings, the higher their account balance, especially over a significant period of time.

This is also why young people being illegally paid cash in hand for work should consider the implications of forgoing the superannuation contributions they’re owed, as it can put the size of their retirement nest egg at risk.

 

 

So, for my age, how much super should I have?

For the competitive among us, understanding the benchmark of how much others in our age group have saved for retirement through their super can be a useful reference guide. According to 2016 statistics released by the Australian Bureau of Statistics in the Survey of Income and Housing, the average superannuation balance by age is as below:

15 to 19 years                       $485

20 to 24 years                       $5,501

25 to 29 years                       $21,372

30 to 34 years                       $38,386

35 to 39 years                       $56,715

40 to 44 years                       $80,899

45 to 49 years                       $114,616

50 to 54 years                       $135,290

55 to 59 years                       $180,689

60 to 64 years                       $214,897

65 to 69 years                       $207,105

70 to 74 years                       $161,974

75 to 79 years                       $76,049

80 to 84 years                       $42,912

 

It is important to recognise the landscape of our current world and set your retirement goals realistically, while aiming high. If your super balance does need a boost, you can consider salary sacrificing, making personal tax-deductible contributions, after-tax or spousal contributions.

 

Impact of Super Changes – How are we addressing your advice needs-5

 

Talk to a professional

Well-meaning friends and family advice can only take you so far – when you have so much at stake, your future and your superannuation may benefit from the support and advice from a professional in the field. Consider talking to your trusted adviser about your financial situation and retirement goals.

 

 

mm

We needed a better way to look after our SMSF clients. So we created one. We experienced first hand the frustration of the ‘old way’ of looking after SMSFs: Financial statements that were out of date by at least 6 months and of no use to anyone other than the ATO, high fees and poor value due to highly skilled and knowledgeable staff spending unnecessary time on laborious data entry and worst of all SMSF trustees not getting the right advice at the right time!