Auswild & Broad | Blog

Planning for retirement can be daunting, but understanding how much superannuation you should have at different stages of your life can make it easier. Here’s a guide to help you gauge whether you’re on track with your super savings.

Why superannuation matters

Superannuation is a critical part of your retirement plan no matter what age you are. It can help deliver a steady income when you stop working, helping you maintain your lifestyle and cover essential expenses. The Association of Superannuation Funds of Australia (ASFA) provides guidelines to help Australians understand how much they need for a comfortable or modest retirement.

Superannuation benchmarks by age

According to ASFA, the amount of money you should have in your super today, varies depending on your age and desired retirement lifestyle. Here are some benchmarks in order to achieve a comfortable retirement1:

• In your 20s: At this stage, your super balance might be relatively low, but not to worry. At age 25, ASFA suggests that you have about $18,500.  
• In your 30s: By age 35, you should aim to have around $101,500 in your super balance.
• In your 40s: By age 45, ASFA suggests you should aim to have around $213,000 in your super balance.
• In your 50s: By age 50, ASFA suggests that you should aim to have around $281,000 in your super.
• In your 60s: As you get closer to retirement, the power of compounding interest works harder for your super balance. At age 60, ASFA suggests you should have around $453,000 in your super balance.

Tools to help you stay on track

Websites like Super Guru offer tools and calculators to help you estimate how much super you should have at your age and track your progress. The Super Balance Detective tool, for example, can provide an estimate of how much you should on average, have in your super account, based on your age and income.

You can also estimate how much super you will have at retirement, using Moneysmart’s superannuation calculator.

If you’re on track to meet your retirement plans or even if you’re ahead of plan – congratulations!  That’s fantastic news.  If your balance is tracking behind what ASFA recommends, you can use the Small change, big savings tool, to see what impact small, regular savings can have on your super balance at retirement.

You can also check out our Growing my super insights hub on our website for information on the different types of contributions you can make to your super.

Finally, knowing how much super you should have at different stages of your life can help you plan for retirement. Regularly reviewing your super balance and making additional contributions, when possible, may help ensure you stay on track to achieve your retirement goals. Speaking with a financial adviser can also help set you up for success when it comes to reaching your retirement goals.

1Calculated using ASFA Super Guru’s Super Balance Detective tool, on 6 September 2024. 

SOURCE: www.resolutionlife.com.au