How much super is enough?
When it comes to super, one-size-fits-all does not apply. But if you’re looking at getting your super sorted, knowing how your savings stack up can help with the next steps.
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Is your super on target?
Taking action on super is harder when you’re in the dark about your goals. Self-employed Financial Adviser, Michelle tells us why it’s important to have a clear target to aim for.
What’s my super goal?
The magic number to save for your retirement isn’t a simple sum. That’s because we’re all so different. Super won’t necessarily be the only money you’ll be spending in retirement. And the way you live and your living costs won’t be the same as everybody else either.
What does a healthy super balance look like at retirement?
Having said that, there are lots of resources available to help you get a rough idea of what your super savings goal should be. One estimate says a couple will need a super balance of $690,000 at retirement to give them $73,337 every year to live on. You can take a look at more figures like these to help you run the numbers for your future in retirement.
Run the numbers for your retirement
Is my super on track now?
How can I catch up?
- Your Super Guarantee payments from your employer are a percentage of your salary. When your salary goes up, your Super Guarantee payments will automatically go up and will help you save more super.
- You don’t have to rely on your employer to save more. You can pay yourself super by making personal contributions. Learn how to Grow your balance
Saving a little extra in your super now can make a big difference to your balance in 30, 20 or even 10 years’ time.
Run the numbers: How much super is enough and how does your current balance stack up
When it comes to money, we’re all wired differently. Setting your sights on a super goal for the income you’ll need to live comfortably when you retire, could be the perfect way to motivate you to get your super sorted.
Expert tip
"If you had $50k in a bank account you could access, you would know how much was in there, probably to the dollar! As well as the fees you were paying and interest you were earning. Your money in super is no different. It's your money, take control over it."
So what does a comfortable or a modest lifestyle look like? The Retirement Standard also includes a weekly and monthly budget for a couple and single person in retirement and detailed breakdown of what their money buys them.
Here’s the annual budget the Retirement Standard says you’d need to live modestly or comfortably if you retired today, and are no longer paying rent or home loan repayments as part of your day-to-day living costs.
| Annual spending for ... | Modest lifestyle | Comfortable lifestyle |
|---|---|---|
| Couple | $47,731 | $73,337 |
| Single person | $33,134 | $52,085 |
Source: Association of Superannuation Funds of Australia (ASFA) Ltd Retirement Standard, June 2024
This table shows what sort of lifestyle you can expect with these different levels of income. The final column describes what life might be like if you only have the Age Pension as income. This is a regular Centrelink payment you may be eligible for when you’re retired.
Finally, it’s worth keeping in mind that how you’re used to spending money before retirement will have a lot to do with how much you’ll spend in retirement. This is why there’s a rule of thumb that you should expect your spending in retirement to be between two-thirds and three-quarters of what you spend just before you retire.
The important thing to remember is that everyone will have a different lifestyle, now and when they retire. So there is no ‘right’ goal for where you should be with your super now or when you start using your super as income. Instead, take these numbers as a starting point to get you thinking about how important this money could be to you.
Check out How do I get my super sorted? to start looking after your retirement savings.
