How much Australians really have in their retirement savings – and what YOU can do from July 1

The worrying retirement levels of most Australians – and what you can do from NEXT MONTH to make sure you can retire comfortably

  • Average Australian retirement pension balances stand at $ 143,979, new data shows
  • That’s well below the $ 535,000 recommended for a comfortable retirement
  • Men generally had $ 162,275 for retirement compared to $ 128,068 for women

Australians are nowhere near enough to retire with average retirement balances of less than $ 145,000.

The Association of Superannuation Funds of Australia recommends that a single retiree have $ 535,000 in reserve to live out their final years in comfort.

But the average super savings in 2018-19 were only $ 143,979, Australia’s new tax office showed on Monday.

Men generally had $ 162,275 in their retirement funds compared to women $ 128,068, a difference of 21%.

The average super savings in 2018-19 was just $ 143,979, according to new data from the tax office. In the photo, women

Super average savings

ALL INCOME: $ 143,979

$ 180,000 PLUS BENEFICIARIES: $ 608,283

MEN: $ 162,275

WOMEN: $ 128,068

Source: Australian Tax Board data for 2018-19

The richest 3.5 percent of professionals, earning more than $ 180,000, had an average super balance of $ 608,283, making them the only income group with more than enough to comfortably retire.

Above-average employees, with salaries of $ 90,000 to $ 180,000, had average balances of $ 257,695.

The 41.7% of Australians earning between $ 37,000 and $ 90,000 had an average of $ 121,119 in retirement savings.

As of July 1 of this year, the threshold for voluntary super contributions qualifying for the 15 percent concessional rate will increase from $ 25,000 to $ 27,500.

The employer’s mandatory super-contributions on that date also increase from 9.5 percent to 10 percent.

They will increase in half a percentage point increments at the start of each fiscal year until they reach 12% by July 2025.

Former Labor Prime Minister Paul Keating, the architect of the mandatory super regime that began in 1992, wants a rate of 15 percent.

The Association of Superannuation Funds of Australia recommends that a single retiree have $ 535,000 in reserve to live out their final years in comfort.  Pictured is a stock image

The Association of Superannuation Funds of Australia recommends that a single retiree have $ 535,000 in reserve to live out their final years in comfort. Pictured is a stock image

When can Australians access their super?

For those born before July 1, 1960, it is 55

The increase to 56 for baby boomers born between July 1, 1960 and June 30, 1961

It is 57 for people born between July 1, 1961 and June 30, 1962

It is 58 for people born between July 1, 1962 and June 30, 1963

It is 59 for people born between July 1, 1963 and June 30, 1964

It’s 60 for anyone born after July 1, 1964

Source: moneysmart.gov.au

Money expert Nicole Pedersen-McKinnon, author of How to Get Mortgage Free Like Me, said setting aside a few hundred a month from an early age was key to being able to retire in luxury with $ 1 million. retirement savings.

“If you start to switch later, it will be a very difficult task to reach that magic million,” she told Daily Mail Australia.

She recommended a 20-year-old college student living at home to set aside $ 381 per month.

The longer someone delays voluntarily reloading their super, the more they will have to contribute later to reach the seven-figure goal.

A worker actively contributing to his super should set aside $ 820 per month starting at age 30, rising to $ 1,921 per month for someone over age 40 and $ 5,778 for someone leaving him or her until 50 years.

Australians have at least more opportunity to add to their super with the ANZ job posting series showing a 7.9% increase in May to a 12-year high of 213,894 open positions.

The number of jobs advertised on the internet has increased for 12 consecutive months to reach 219.8% from a year ago and 38.8% above the level before the pandemic of early 2020.

CommSec senior economist Ryan Felsman said international border closures and skills shortages were a major obstacle for employers.


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