Average superannuation balances at age 42, 52 and 62 in Australia

It’s never too early to start thinking about whether you’ll have enough superannuation to retire on.

It can be helpful to find out how your superannuation balance compares to other Australians the same age.

And also, to compare it to how much you need to have saved away by the time you decide to retire.

Here’s a breakdown of what the average Australian aged 42 has in their super, compared with those aged 52 and 62.

Are you on track with the rest of the population?

How much superannuation does the average Australian have at age 42?

According to the most recent data from the Association of Superannuation Funds of Australia (ASFA), there isn’t an exact amount for every age, but there is a bracket which can help provide a good guide to work towards.

According to ASFA, the average male aged 40 to 44 has around $140,680 in their superannuation.

Females the same age have a little less, at around $109,209.

This is usually because women take more time out of the workforce, or move to reduced hours to care for children. At which time they earn lower or even no superannuation.

The gap then widens every year as compound growth takes over at different rates for men and women.

How much superannuation does the average Australian have at age 52?

The average male aged 50 to 54 has approximately $254,071 in their superannuation.

Meanwhile, the average female has a lot less, closer to $190,175.

How much superannuation does the average Australian have at age 62?

By the time the average male reaches the 60 to 64 age bracket, they have around $395,852 saved.

The average 60 to 64 year old woman has closer to $313,360.

Are these average super balances enough to retire on?

No, in fact the average balance is far behind at every age milestone.

ASFA data concludes that a comfortable retirement is expected to cost around $56,166 per year for individuals and $78,998 combined per year for couples.

To afford that, by retirement, a single person will need a superannuation balance of around $630,000, and couples need around $730,000.

How much do I need in my super at each age to be considered on track?

I’ve crunched the numbers using ASFA’s super detective tool to work out how much you should really have in your superannuation at age 42, 52 and 62 to be able to retire comfortably.

Assuming you’ll retire at age 67 with $630,000, and based on a $100,000 per year income, you’ll need around $130,000 in your superannuation at age 42.

By age 52, this should increase to $290,500.

Then by age 62, this should be closer to $505,000, before climbing to $630,000 by retirement age of 67.

How does this compare to the average balance?

As you can see by the figures above, the average male aged 40 to 44 is slightly ahead (at $140,680 versus the required $130,000 at age 42), but the average female is already behind by around $11,000.

By age 52, the average male is around $36,000 behind, while the average female is roughly $100,000 behind.

By age 62 the gap widens even more. The average male around this age is roughly $110,000 behind, and the average female is around $192,000 behind what is considered on track.

How does your superannuation balance compare now?

The post Average superannuation balances at age 42, 52 and 62 in Australia appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.