Many people are at the peak of their careers in their late 40s, which means they’re possibly earning the most they ever will per year. <\/p>\n
That means their superannuation<\/a> savings are growing rapidly too, with employers now paying 12% under the updated Super Guarantee<\/a>.<\/p>\n That all sounds good. But with the super savings you have today, are you on track for what is defined as a ‘comfortable’ retirement<\/a>?<\/p>\n The latest tax data for the financial year 2023 shows the average superannuation balance of Australians aged 45 to 49 is $170,774. <\/p>\n If we break the numbers down between the sexes, the average superannuation balance for men aged 45 to 49 is $193,501. <\/p>\n The average for women aged 45 to 49 is $147,146. <\/p>\n Is this enough for a comfortable retirement? <\/p>\n How much do you need in superannuation for a comfortable retirement? <\/p>\n The Australian Retirement Standard<\/a> is the trusted definitive guide to budgeting in retirement.<\/p>\n The Association of Super Funds of Australia (ASFA) created the Retirement Standard in 2004 and updates it quarterly for inflation.<\/p>\n Currently, ASFA says couples need at least $690,000 and singles need $595,000 in superannuation savings for a comfortable retirement. <\/p>\n These figures assume debt-free home ownership, a part-pension, and 6% total annual returns on superannuation savings.<\/p>\n So, with an average of $170,774 in your superannuation account at age 49, are you on track to reach $690,000 or $595,000? <\/p>\n Unfortunately, the answer is no. <\/p>\n According to ASFA’s \u00a0Super Detective<\/a>\u00a0calculator, a 49-year-old Australian needs $281,000 in super savings today if they want enough money by age 67 for a ‘comfortable’ retirement. <\/p>\n ASFA defines a comfortable retirement as being able to easily pay for all of life’s essentials, plus some extras. <\/p>\n They include top-level private health insurance, a variety of exercise and leisure activities, occasional restaurant meals, a domestic trip once a year, and an overseas trip every seven years.<\/p>\n The good news, though, is you are on track for what ASFA calls a modest retirement. <\/p>\n For a modest retirement, ASFA says couples and singles need just $100,000 in superannuation in today’s monetary terms.<\/p>\n This is a relatively low balance and reflects ASFA’s assumption that retirees with a modest lifestyle receive the full age pension<\/a>.<\/p>\n According to the tax data (which is two years old, remember), you’ve already got enough. <\/p>\n Both men and women have enough in their super with their average $193,501 and $147,146, respectively, to fund a modest retirement. <\/p>\n ASFA’s definition of a ‘modest’ retirement is outlined here<\/a>.<\/p>\n What if you want better for yourself? <\/p>\n This is a great question to ask yourself at this age, because the best thing you have going for you right now is time. <\/p>\n Time is all you need for the magic of compounding<\/a> to do its job. <\/p>\n The average age at which Australians intend to retire is 65.4\u00a0years. <\/p>\n If that sounds about right for you, that means you have more than 16 years to get your superannuation savings in order. <\/p>\n If you want to shoot for a comfortable retirement, you need to get your super up to $690,000 or $595,000 by age 67. <\/p>\n There are several ways you can boost your superannuation savings. <\/p>\n The most obvious one is maximising your annual personal superannuation contributions. <\/p>\n Personal contributions can be concessional (you can claim a tax deduction) or non-concessional (no deduction).<\/p>\n There are caps in place: $30,000 per year<\/a>\u00a0for concession contributions and $120,000 per year<\/a> for non-concessional contributions. <\/p>\n Because your total super balance is less than $500,000, you can also take advantage of the carry-forward rule<\/a>.<\/p>\n This allows you to use any unused concessional contributions cap amounts from the previous five\u00a0years.<\/p>\n Unused cap amounts expire after this. <\/p>\n