How much money should I save for retirement? Superannuation targets by age.
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Curious about how much superannuation you need for a comfortable retirement? Many sites will toss you the average super balance for people your age and call it a day. However, averages aren't always helpful, as outliers can skew the figures, and they fail to indicate if the 'average' Australian is truly saving enough for retirement.
Here we do it differently. We’ve tracked down the exact balances you need for a comfortable retirement, at most critical age markers, courtesy of the Association of Superannuation Funds of Australia (ASFA).
How much super should I have at my age?
ASFA provides targeted superannuation balances needed at different ages to meet their Comfortable Retirement Standard, which is $595,000 for a single person and $690,000 for a couple by age 67.
It considers factors like salary and compulsory contributions. For example, at age 40, a person earning $65,000 needs a balance of $162,000, while one earning $95,000 needs a much lower amount, since the employer contributions tied to their higher salary will eventually make up for the difference.
As you can see, many Australians fall short of the necessary super balance, illustrating why comparing yourself to the average, or in this context, the median, doesn't provide a full picture.
| Age | Required balance $65,000 wage ($) | Required balance $90,000 wage ($) | Median balance (male) | Median balance (female) |
| 22 | 8,000 | 0 | 5,000 | 5,000 |
| 25 | 29,000 | 0 | 11,000 | 11,000 |
| 30 | 68,000 | 8,000 | 32,000 | 28,000 |
| 35 | 112,000 | 57,000 | 61,000 | 49,500 |
| 40 | 162,000 | 113,000 | 92,000 | 67,000 |
| 45 | 220,000 | 176,000 | 126,000 | 87,000 |
| 50 | 284,000 | 249,000 | 156,000 | 105,000 |
| 55 | 360,000 | 332,000 | 181,000 | 123,000 |
| 60 | 444,000 | 425,000 | 204,000 | 148,000 |
| 65 | 542,000 | 535,000 | 215,000 | 191,000 |
| 66 | 565,000 | 560,000 | 216,000 | 202,000 |
Source: ASFA, November 2023
How much super do I need to retire?
ASFA estimates that singles will need $51,630 and couples will need $72,000 per year for a comfortable retirement. And as we mentioned above, that means you’ll need $595,000 as a single or $690,000 for a couple in your super by age 67 if you want to retire comfortably.
But how do they define a comfortable retirement? Let’s have a look:
Comfortable vs. modest retirement
Any less than the figures provided, and you’ll be slipping into ‘modest retirement’ territory. It’s not the end of the world, but as you can see, a modest retirement won’t be as, well, comfortable:
| Comfortable retirement | Modest retirement | |
| Health | Top-level private health insurance, inc. specialists and pharmacy needs | Basic private health insurance with limited gap cover |
| Home | Home maintenance and updates, including kitchens and bathrooms | Limited budget for home repairs and household appliances |
| Cars | Own a reasonable car, inc. insurance and maintenance | Own a cheaper, older, more basic car |
| Leisure | Regular leisure activities including club memberships, sports, and other outings | Infrequent leisure activities, with occasional cinema trips |
| Internet | Fast, reliable devices; internet, mobile and streaming subscriptions | Basic mobile and internet plans with modest data allowance |
| Eating Out | Occasional restaurant meals, home delivery and takeaway coffee | Infrequent dining at inexpensive restaurants, limited takeaway/home-delivery |
| Clothing | Regular replacement of worn-out clothing and footwear, modest wardrobe updates | Limited budget for replacing and updating worn items |
| Travel | Annual domestic trip, occasional overseas trip | Annual domestic trip or a few short breaks throughout the year |
How to boost your super and get back on track
No matter your super savings target, there are strategies to help you catch up—or at least get closer to your goal—if you find you're falling short. Here are some suggestions:
- Consolidate your super accounts. Lost super is surprisingly straightforward to find, and combining all your super funds into one helps reduce your exposure to fees, which could eat into your returns.
- Ask your employer to contribute with your paycheck. At the moment, employers are only required to pay super quarterly, but this limits how much your balance is compounded. See if you can negotiate with your employer to have them make contributions monthly.
- Make voluntary contributions. Have extra income to spare? You can set up a salary sacrifice scheme with your employer, or contribute some of your own income, to boost your super balance and potentially gain some tax advantages.
- Compare super funds and investment options. Super funds offer a variety of investment options. If your chosen investment mix isn’t performing as well as you’d hope, you may have other choices that are more to your liking within the same fund. If the fund itself isn’t living up to your expectations, you can always compare options and make the switch.
- Consider professional advice. If you’re unsure about how to proceed, talking to a financial advisor about your options could provide some much needed clarity.
Bottom line
Understanding the ideal super balance for your age is a helpful marker, whether you're right on track or have some catching up to do. Knowledge is power—it provides the insights you need to pivot, make decisions, and ultimately secure a comfortable retirement!
