When I read an article recently by journalist Karren Vergara (on Moneymag.com.au) on her super balance of $154,000, it got me thinking. With just over 25 years to retirement, she can’t possibly reach the $1 million mark that so many of us are convinced we’ll need in our super before we can retire.
But perhaps she doesn’t need to. According to AMP, the average super balance for men aged 40-44 is $134,992 and for women, it’s $98,572. By the time they reach 50-54, it’s $242,007 and $159,188 respectively.
Now, Karren’s figure of $154,000 is certainly an outlier for a woman aged under 40. And in 10 years this total would likely be around $286,000 (with 6% returns and current contribution levels) whereas the average for a woman in the 50-year age group is only $242,000. So the effort Karren has made to keep her super topped up certainly shows it is likely to pay off.
The Association of Super Funds of Australia (ASFA) calculates that the super needed for a comfortable retirement is $44,224 a year for a single person and $62,562 for a couple.
To generate that annual income, you would need about $737,000 in super (assuming a 6%pa return).
This story is from the June 2021 edition of Money Magazine Australia.
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This story is from the June 2021 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
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