Understanding what to expect from your superannuation balance at key retirement ages like 60, 65, and 70 offers a starting point for your retirement planning process.
These milestones can give you a snapshot of how well you're preparing for retirement and what steps you might need to take to ensure a comfortable future.
My colleague Sebastian covered this topic at the beginning of the year based on FY21 statistics from the Australian Taxation Office (ATO). Read on to see my updates based on the ATO's FY22 data.
I will discuss the median figures in addition to averages, as the latter might be inflated due to outliers, including super-riches.
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Average superannuation balance leading up to 60
By the time you hit the age of 60, you're looking more closely at retirement. According to the FY22 ATO report, the median superannuation balance leading up to this age, from 55 to 59, was $155,127. This compares with the average for the same age group of $265,739.
This is a key time to reassess your financial strategies, as you might be starting to consider winding down from work.
Progressing to 65
Moving from age 60 to 65 is an essential phase. Some decide to retire during this time, which impacts their super balance as they start to make withdrawals from their designated super fund. During this period, from ages 60 to 64, the median balance in FY22 was $177,981, while the average balance was $341,585.
Many people are still likely to be active in the workforce during this stage, which may explain why the median super balance increased by about 15% for the five years. Similarly, the average super balance increased by 29% for this age group compared to the younger age group above.
This is a crucial time to consider your investment choices, the growth of your savings, and diversification.
Reaching 70
Many Australians are well into retirement at the age of 70. In FY22, the median superannuation balance for people aged 65 to 69 was $198,715, and the average was $404,553. From there, the growth rates of these balances typically decelerate before starting to decline for the age group of 75 and more.
This shows the impact of people starting to use their super for retirement income while trying to maintain enough balance to last through their retirement years.
Maximising your super
To make the most of your super, consider additional contributions to maximise tax benefits and optimise your investment options.
While these average figures offer some insights, taking a personalised approach towards managing and growing your super will be key to a comfortable retirement.
