How much superannuation should I have by age 30?

Let’s be frank, most 30-year-olds probably don’t make a habit of regularly checking up on their superannuation accounts. Let alone honing them for the best possible returns. In fact, there are probably far too many 30-year-olds who don’t even know how much they have in super.

If you’re 30 and this description doesn’t fit your circumstances, congratulations. Here at the Motley Fool, we think everyone should be fully invested (pardon the pun) in managing their super. No matter their age. After all, super is our money. And it remains our best ticket to a comfortable retirement here in Australia.

Last month, we discussed how the average and median superannuation balances for someone aged between 30 and 34 were $51,400 and $38,681 respectively.

But if you’re gunning for a comfortable retirement, how much exactly should you have in your super fund? That’s what we’ll be digging into today.

How much should a 30-year-old have in superannuation?

The latest data from the Association of Superannuation Funds of Australia (ASFA) tells us that it is estimated that in order to achieve a ‘comfortable’ retirement, a single retiree would need an annual income of $50,981 in today’s dollars. That assumes the retiree owns their own home.

For couples, a combined income of $71,724 was estimated to be the minimum for a comfortable retirement.

According to superguru.com.au, this means that a 30-year-old should have a superannuation balance of $66,500 today if they wish to achieve that ‘comfortable retirement’ status. In today’s dollars, this will enable our 30-year-old to hit the $595,000 in retirement savings that a single person will need if they wish to enjoy a comfortable retirement.

It’s assumed that the final super balance will also allow our single retiree to enjoy at least a part Age Pension. It also assumes that they will be drawing down their super fund’s capital during retirement.

Given that this ideal figure of $66,500 is nowhere near the average super balance, let alone the median, for someone aged 30-34 today, it seems our retirement system has a lot of work to do.

The post How much superannuation should I have by age 30? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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