Given how important the Aussie super system is to our country's finances and our own retirements, it is somewhat curious that there isn't more education around the system itself.
When used properly, superannuation can be a powerful investment tool for almost any age and can set you on the path towards financial independence.
So with this in mind, here's a few things to consider when seeing how your superannuation stacks up against the rest of us at the moment.
Are you maximising your contributions?
Even for low-income earners, superannuation contributions can be a lucrative investment with the government tipping in extra dollars for each contribution made up to $500 per year as part of the low-income super tax offset.
That means your kids could be getting a very handy retirement boost, particularly given they're likely to have many decades until looking at their own retirement.
For those in a higher income bracket, salary sacrificing can also be a solid way to reduce your tax bill while earning an instant ROI at the same time.
By salary sacrificing before-tax, you reduce your overall tax base which means more money towards your retirement and less going to the ATO, in effect providing a return before it's even invested in your super fund.
How does your average balance compare?
According to 2015-2016 statistics from the Australian Superannuation Fund Association (ASFA), the average balance for an individual aged 30-34 was $43,580 for men and $33,750 for women.
Similarly, QSuper's 2017-2018 statistics show the average balance for men aged 15 and over was $168,500 while for women it came in at $121,300.
It's worth noting that the average balances for women do see a discrepancy over time, particularly in the 30 to 40-year age bracket compared to their male counterparts largely due to career breaks and other factors.
The positive for us as a society is that the average super balances continue to rise according to AFSA data, reducing the overall burden on social welfare and the aged pension.
What can I do to boost my super?
If you feel like you're behind the 8-ball with your super balance, the first thing to note is that retirement is individual and what one person needs in their retirement may not be the same for you.
If you're looking for quick ways to increase your super balance, it's worth looking at both pre- and post-tax superannuation contributions as well as carrying forward contributions from other financial years to boost your balance.
The key is to maximise your super while minimising your tax in a way that fits your current and future lifestyle goals, which is where a professional advisor can come in handy as part of your future financial planning.
For those with a self-managed super fund (SMSF), you can get back to buying the next Afterpay Touch Group Ltd (ASX: APT) in 2019 as you sail towards retirement!
