How your superannuation compares to the average 4

Superannuation

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If you have ever wondered how your superannuation compares to the average Australian, then there’s some good news.

It turns out, the majority of 60 to 64-year-olds have a higher superannuation balance than the average Australian.

A report in The Age this week highlights the average Australian has a superannuation balance of $42,000, according to the Australian Prudential Regulation Authority.

Now according to the Association of Superannuation Funds of Australia, that it’s enough for just one year of comfortable retirement.

But the figure is per superannuation account, not necessarily a per person figure.

The Australian Tax Office on the other hand believes the average super balance per person is $108,000.

Unless you’re aged between 60 and 64 of course.

The Age reports the Bureau of Statistics estimates the average super balance of men aged 60 to 64 is $377,000, while the figure is $215,000 for women of the same age.

Yes, that’s right, the average 60 to 64-year-old has a super balance three times the average Australian.

If you’re in a couple and you’re at the pre-retirement stage of your life, than chances are you have on average $500,000 in superannuation between you.

Although, if you’re a single woman who doesn’t own any property you’re still likely to have less.

Chairman of retirement income at Challenge Jeremy Cooper told the Age compulsory superannuation was working well in making sure older Australians had the right amount of money saved up for a comfortable retirement.

“When you look at super wealth more carefully, it is possible to see that the system is a success: it’s already enabling retirees to create meaningful amounts of income in retirement,” he said.

And the news is even better for your children and grandchildren, with Cooper estimating the average retiring couple in 2032 will have more than $1 million between them in superannuation.

“This is like having over $600,000 today, which is a sizeable amount to support retiree spending needs,” he said.

Do you think the estimates add up? Do you believe you have or had enough superannuation for a comfy retirement?

 

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The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. That is fairly accurate I would say. I have spoken to many people in that age bracket of 60 – 64 and they all have over $250,000 each in super so no excuses for not having enough to get by on. I know many 65 -71 year olds who have $200,000+ too. Maybe not enough to maintain their working life standard of living, but certainly enough to be comfortable.

    It is mainly the 74+ year olds that find it hardest because they didn’t have the benefit of compulsory super at the higher amount. For many of them it was only 4% employer contributions not the 9+% the younger ones enjoy today.

    I went without just too much to make sure I had enough to maintain a reasonable lifestyle in retirement, then they changed the rules so that I fall between all the cracks and receive no assistance whatsoever but I am not complaining because even though it is not easy and there are few luxuries, at least I don’t have to put up with Centrelink !! Or be told by the younger generations that I am robbing the system !!

  2. using averages is not mathematically correct when dealing with Super stats. If you take 2 people – one has a balance of $1million and the other has $200000, then the average is $600000 – this figure is then used to make the rules and the poor guy with $200000 is disadvantaged. what would be better to see is a graph of account balance (small range could be used) vs number of people of an age with that balance. Then the public and the politicians would have a better idea of who has what.

  3. What a meaningless article. What is missing is that on current figures anyone self funding retirement now will require $1milion. The $1m by 2032 shows the amount of compulsory contribution is still to low. The Abbott/ Turnbull Government has delayed the next increment, which will mean the majority of retiring will rely on Centrelink for many years to come. They have transferred the funding of retirees to future generations.

    As self funded retirees we are comfortable, as a couple we have around the $1m and as long the Government does not try for a money grab at my superannuation, as some have suggested we won’t have to depend on Centrelink.
    As a self funded I’m receiving similar benefits to those still working with some reduced income tax due to my age. The only way I have enough is I have no debts and own my home. If I had to rent then probably would require more in my superannuation.

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