Funding retirement
How much is enough?
According to the Association of Superannuation Funds of Australia (“ASFA”)*, the superannuation balance needed to fund a comfortable retirement at age 67 is $640,000 for couples and $545,000 for singles. This assumes that in retirement you are receiving a part Age Pension, this supports a retirement income of $61,786 per year for couples and $43,787 per year for singles.
Of course, this may or may not be enough for you to fund your ideal retirement lifestyle, but it’s a good start to work out where you sit.
But how do you know if you’re on track?
The first step of your journey to your desired future wealth is to figure out where you’re currently sitting.
Log in to Member Online for your current super balance and statements.
Source: Super Guru Super Balance Detective; ASFA Retirement Standard;
If you’re not headed in the right direction just yet, a few changes now to get your Super under control could mean the difference between retirement cocktails on a yacht or cracking a tinny in a… tinny.
Get your super under control
| AGE | STRATEGY |
| 20s | Get your super off to a flying start Check your insurance cover, review your investment options and start making small extra contributions to take advantage of the Government co-contributions. |
| 30s | Become a super hero If you haven’t yet, then review your investment options, find lost super, and start salary sacrificing to take advantage of the generous tax concessions including the First Home Super Saver (FHSS) Scheme. |
| 40s | Do a comprehensive health check Review your insurance cover, risk profile and personal contribution levels as you get married (or divorced), change jobs, raise kids or when your personal circumstances change. Also think about spouse contributions and contribution splitting. |
| 50s | Check in with us that you’re on track for a comfortable retirement Even better, get the right advice to understand when you might be able to retire and what your options are. |
| 60s | Maximise your retirement income Consider transition-to-retirement strategies, tap into government incentives, get some financial advice, or look to downsize your home. |
More ways to take control
- Access our SuperClick Advice online tool anywhere, anytime and at no extra cost; that is the beauty of this self-guided digital tool. It could help you improve your financial health in retirement.
- Search for any lost super; you could end up with a nice surprise and find some cash you didn’t even know about. We’ve reunited some of our members with over $55 million, and the ATO is still holding $17.5 billion of lost super^.
Find out more
- Watch our educational module on ‘Funding Retirement’.
- Find out more about what ASFA thinks you’ll need in retirement with the ASFA Retirement Standard Calculator.
* Sources: ASFA Retirement Standard for yearly spending at the Comfortable level; (September quarter 2019, national). The figures in each case assume that the retiree(s) are healthy, own their own home and relate to expenditure by the household. This can be greater than household income after income tax where there is a drawdown on capital over the period of retirement.
For balance required at each specified age see ASFA Super Guru Super Balance Detective for Singles
^ https://www.ato.gov.au/Media-centre/Media-releases/Check-now-for-your-share-of-$17-5b-in-lost-super/
