Average superannuation balance of Australians aged 60 to 65 in FY27. How does yours compare?

Age 60 to 65 represents a couple of huge milestones for Australians. This five-year period is where the focus shifts from accumulating superannuation, to spending it.

At age 60, Aussies have reached their preservation age, where they can access their superannuation balance provided they stopped working.

Then at age 65 is the next important milestone, where all Aussies can access their superannuation provided regardless of whether they’re still earning an income or not elsewhere.

It makes sense, then, that at this age bracket, your superannuation balance will be front of mind. 

But do you know how it stacks up against others the same age?

Or how it compares to what you actually need to afford retirement?

Here’s a breakdown.

What’s the average superannuation balance of Australians aged 60-65?

There aren’t exact figures for the average balance for this age bracket, but there are some rough guides.

The Australian Prudential Regulation Authority (APRA) also tracks average super balances across age groups in Australia.

According to the latest APRA data, the average super balance for Aussies aged 60-64 is around $270,800. 

Those aged 65 would need to look at the next bracket up. For 65-29 year olds APRA estimates the average super balance to be $290,600.

APRA isn’t the only industry body to provide some super estimates though. The Association of Superannuation Funds of Australia (ASFA) also provides some estimated figures, and they’re a lot higher.

According to ASFA, the average male aged 60-64 has around $395,852 in the superannuation. The average female the same age has $313,360.

Again, 65 year olds would need to look at the bracket above. ASFA’s data shows the average 65-69 year old male has $448,518 saved in their superannuation. But females the same age have closer to $392,274.

How much does it compare to what I need to retire?

There’s no such thing as a “magic number” when it comes to your superannuation.

The amount you’ll need to fund your retirement depends on whether you’re single or part of a couple, whether or not you own your home, what lifestyle you expect to live, and any other savings you have.

But again, there are some rough guides to aim for.

ASFA data expects that a comfortable retirement will cost around $56,166 per year for individuals and $78,998 combined per year for couples.

To afford that, by age 67, a single person will need a superannuation balance of around $630,000. Meanwhile, couples will need closer to $730,000.

The data assumes you will earn a part Age Pension, and that you own your home outright.

Elsewhere, Super Consumers Australia forecasts that individuals will need up to $891,000 in their superannuation by age 65 in order to be able to retire with a high quality of life. Or $1.216 million for couples.

How does your balance compare to other Australians the same age? And how far away are you from your goal?

The post Average superannuation balance of Australians aged 60 to 65 in FY27. How does yours compare? 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.