Retired Couple Playing Golf

How Much Should You Have in Superannuation Now in Order to Have a Comfortable Retirement?

Workers who fear they will have insufficient funds once they retire can check for the first time if their superannuation is on track.

The Association of Superannuation Funds of Australia (ASFA) has released new figures to show people exactly where their retirement balance should be sitting at age 30, 40, 50 and 60.

To achieve a comfortable retirement, singles need $545,000 in superannuation and couples require $640,000 by age 67, while also owning their home outright and having good health.

These balances presume retirees are drawing down on their super and receiving a part age pension.

Self Managed Superfund

The data has revealed for singles earning $70,000 per year they should have $50,000 at age 30, while for Australians earning $100,000 they could reach these balances for a comfortable retirement by having no super savings at that age.

By age 60 a person earning $70,000 per annum should have $425,000 tucked away, while that late starter on $100,000 should have accumulated $410,000.

ASFA chief executive Dr Martin Fahy urged Australians to check to see if their balances are on track or “take action now”.

“You have got to start thinking about extra contributions but with more and more broken patterns of employment people should start to accumulate a bit quicker more than the default 9.5 per cent of compulsory super,’’ he said.

“There’s this sense that we might all be able to work as long as we want whenever we want, but we need to be careful that we are not overconfident in that assumption.”.


Savings: One in Three Women Have Insufficient Savings Stashed Away 

A comfortable retirement will enable retirees to be involved in leisure activities, have a good standard of living by being able to freely purchase household goods, private health insurance, drive a good car and take both domestic and international holidays.

The superannuation guarantee — compulsory employer super contributions — has remained at 9.5 per cent but is planned to reach 12 per cent by 2025.

Intrust Super’s chief executive officer Brendan O’Farrell also urged Australians to review their super, consolidate multiple accounts and consider tipping more in if they had the cash to do so. The alternative was a retirement shortfall.

“You could be reliant fully on the age pension,’’ he said.

“You will only be able to afford a ‘moderate lifestyle’ in retirement and may not be able to afford important items such as, private health insurance and airconditioning and you may struggle to meet regular loan repayments.”

What Do You Need in Super Now for a Comfy Retirement?

Earning $70,000 per annum Earning $100,000 per annum

30yo $50,000 $0

40yo $175,000 $100,000

50yo $275,000 $250,000

60yo $425,000 $410,000.

An SMSF is a Popular Way to Save for Retirement

The value of your savings underpins the quality of your retirement, so asserting control over superannuation investments and aligning those investments with your retirement goals is a prudent approach. For this reason, a self managed super fund (SMSF) can be an attractive choice for retirement planning for some investors, as it offers a certain level of control, transparency and flexibility.

You should live what you love when you retire. If you really are looking forward to a comfortable retirement, start planning today with our Simple SMSF services.