Retirement might seem like a far off dream for many in the workforce. However, it’s never too early to start thinking about how much money you might require to live comfortably. Now might be the right time to ask yourself “How Much Super Should I Have?”.
Your super balance will most likely fund your retirement. Knowing how well it is performing at your current age is a critical way to address performance issues. You want to make sure you’ll be getting the most out of your super when it comes to retiring.
How Much Super?
The amount of super that you need to live comfortably during your retirement may depend on a range of factors. Expenses that you may incur and outstanding debts you may impact on your required income. Also, you will need to consider if you will be eligible for other types and forms of income.
According to figures set out in March 2021, those looking to retire today (regarding individuals and couples around the age of 65) would need an annual budget of around $44,412 or $62,828 to fund a comfortable lifestyle. For a modest lifestyle, they would need a yearly budget of $28,254 or $40,829, respectively.
Everyone’s situation is different, and their super balance will likely reflect those differences.
Men and women may have different super balances due to pay gaps, salary differences and potentially the amount of time they have spent working (maternity leave, working part-time versus full-time etc., taking time off work for travel, etc.). For example, a woman in the 20-24 age bracket may have an average balance of $8,051, while a man in the same bracket is expected to have an average balance of $9,481. In the 40-44 age bracket, the average balance for men is $134,992, while women in that same age group may only possess $98,572.
Retirement Planning
So how can you make sure that your superannuation gets the boost it needs to fund your retirement? We can suggest the following:
- Track down lost super to make sure that you’re not paying for multiple fees on different accounts.
- Consider whether consolidating your funds might be a worthwhile option to keep easier track of them.
- Review your investment options (you may want to consider switching to a more growth-focused super investment option, for example).
- Review your super at least once a year, and check the fund’s performance, fees you are paying, what insurance you might have inside your super and if it is still suitable for your current needs.
If you’re looking towards your future and want more advice on planning for your retirement concerning your superannuation, you can speak with your super provider or us.
