Hands up if thinking about your super makes you feel, well… tired.
Maybe you’ve been meaning to check if the fees you’ve been paying are too high, or perhaps you’ve got plans to consolidate your super accounts but haven’t gotten around to it yet. If that’s you, I really, really understand. Super is one of those things a lot of people seemingly forget to pay attention to for years at a time (I’m definitely guilty of that).
However, a recent piece in the Sydney Morning Herald has highlighted that the government’s Retirement Income Review (which was released last week) showed that “Most people die with the bulk of the wealth they had at retirement intact.”
The findings suggest that most Australians at retirement age are more than able to survive with the finances accrued in their superannuation accounts along with the pension (which at a maximum pays $22,375 per year for singles).
Obviously, we’re speaking in general terms here, and circumstances can certainly vary (average super balances for women are lower on average, for example), but as was highlighted by the SMH, this is pretty encouraging news.
“Given the current level of uncertainty, Australians should be reassured that the retirement income system is effective, sound and its costs are broadly sustainable,” the Retirement Income Review states.
In any case, it is useful to have an idea of where your funds are at and what you can do to better set yourself up financially, so I’ve gone and taken a peek at the average super fund amounts according to age.
According to AMP, the average balance of super for Australians in 2020 looked like this:
Ages 20 – 24, men sat at $9,481 and women at $8,051. For 25-29 year olds men on average held $28,319 and women 23,773. At 30-34, men tend to have $58,035 and women $45,968. 35-39, men had an average of $92,425 and women $72,098. For ages 40-44, men had accrued $134,992 and women $98,572. At 45-49 men held $182,146 and women $127,687. Between ages 50-54, men sat at $242,007 and women $159,188. For 55-59 year olds, it was $311,163 for men and $207,254 for women. At 60-64 men on average saved $371,599 and women $251,409. And lastly at 65-69, men were at $384,539 and women $313,050.
AMP shares that these figured were informed by the Association of Superannuation Funds of Australia.
It’s important to remember that everyone’s financial journey is different, and maybe yours does not fit into the average mould. But if you’d like to take steps to sort out your super, check out this little explainer we put together for you here. And if you’re thinking of changing super funds, here’s a list of what to avoid.