How much super should I have at 50?
By 50 you should have almost $300,000 in super for a comfortable retirement (but most of us don't). Luckily, there are plenty of ways you can maximise your super in your 50s.
Key takeaways
- Experts suggest that a comfortable retirement for a single Australian 67-year-old is $595,000. That works out to an estimated super balance of $274,000 at age 50.
- But everyone's reality is different, and data shows most Australians don't have that much super saved. Your 50s are a good time to get a clearer idea of your retirement goals, pay off debts and add to your super.
- This will set you up for a much stronger position in retirement.
How much super should you have at 50?
If you're aged 50 today you still have at least a decade before you can access super at 60. If you aim to retire at 67 then you have 17 working years to grow your super.
The Association of Superannuation Funds of Australia (ASFA) states that you need a balance of $595,000 (that's for a single person, or $690,000 for couples) to have a comfortable retirement at 67.
But what does that look like at 50? And do you really need that much?
At 50 you need $274,000 in super for a comfortable retirement
According to Finder's superannuation calculator, someone born in 1975 looking to retire comfortably should have a current super balance of $274,000 at 50.
That's based on the following assumptions:
- You want to retire at 67
- You want to retire "comfortably" as defined by AFSA as a super balance of $595,000 at retirement
- You earn $80,000 a year
- Your super fund has an average annual return of 7.5%
- You pay $300 a year in fees to your fund
This is a simple hypothetical. In reality your income changes over time, as does your fund's performance and fees.
How much super you'll need for a comfortable retirement by age
| Age | Balance Required |
|---|---|
| 30 | $35,000 |
| 33 | $64,800 |
| 35 | $85,500 |
| 37 | $107,500 |
| 40 | $141,500 |
| 43 | $178,500 |
| 45 | $203,900 |
| 47 | $231,000 |
| 50 | $274,000 |
| 53 | $319,000 |
| 55 | $351,000 |
| 57 | $384,000 |
| 60 | $437,000 |
| 63 | $493,000 |
| 65 | $533,000 |
Examples above assume you earn $80,000, pay $300 in super fees per year and your fund returns 7.5% annually.
How much super do Australians actually have at 50?
In reality the average Australian super balance at age 50 is actually $237,084 for men and $176,824 for women. The median balance is much lower, at $162,146 for men and $111,063 for women.
The median is probably more useful here because it represents the mid-range of the data, while the average can be skewed by people with very large balances.
See how you compare to other Australians by looking at the table below.
How much super does the average Australian have by age?
| Age Range | Median Balance (Male) | Median Balance (Female) |
|---|---|---|
| Under 18 | $289 | $185 |
| 18–24 | $4,617 | $4,275 |
| 25–29 | $17,545 | $17,840 |
| 30–34 | $39,796 | $34,327 |
| 35–39 | $70,181 | $54,391 |
| 40–44 | $101,231 | $74,066 |
| 45–49 | $133,616 | $93,471 |
| 50–54 | $162,146 | $111,063 |
| 55–59 | $186,255 | $128,675 |
| 60–64 | $205,385 | $153,685 |
| 65–69 | $206,091 | $191,475 |
| 70–74 | $200,349 | $198,005 |
| 75 or more | $166,185 | $161,201 |
Turning 50? What are your retirement goals?
It's hard to accurately estimate how much money you'll need in retirement. Many people in their 50s have dependent children, home loans and sizable living expenses.
But by age 50 you should start to have some idea of your retirement goals, even if you're at a very different stage of life. And this can help you prepare for retirement.
- Look at your current super balance. This is your starting point. Check you and your partner's super if you're in a relationship. The main thing here is to make sure you don't have multiple funds getting chewed up by fees. But it's a good idea to look at your fund's performance (more on that below).
- Look at your income and expenses. Try to get a rough idea of how much you save each month. If you still have big debts like a home loan, now is a good time to start thinking about ways to reduce that debt and start increasing your super contributions if your balance is looking a bit low.
- Set some tentative retirement goals. At what age do you want to stop working? Will you quit working completely or go part time? Will you be able to fund your retirement yourself or will you need to access the Age Pension? Do you plan to own your home outright? Do you want to travel? Can you estimate how much you'll be spending annually when you're older?
What to think about when considering your retirement lifestyle
It's very tricky to plan a realistic budget for your retirement well in advance. But breaking life down into some essential categories can help.
- Holidays and travel
- Medical needs and health insurance
- Car
- Housing
- Clothes
- Hobbies and leisure activities
- Eating out
Most Australians overestimate their financial needs in retirement
While it's better to have too much than too little, Australians tend to over estimate how much they need in retirement.
"It's clear from our research that many Australians are overestimating the amount of money they need to comfortably retire, while some are underestimating it," says ASFA CEO Mary Delahunty.
"This is where access to affordable and accessible financial advice could make a world of difference."
6 ways to maximise your super in your 50s
The best time to grow your super is when you're younger because the money has more time to compound. But you can still grow your super when you're in your 50s.
- Consolidate your super funds. If you've been working for 30 years you may have multiple super funds. But this is a bad idea because multiple funds means multiple fees, reducing your overall retirement savings. Check your super funds by logging into the ATO via MyGov and consolidate the funds into one account.
- Review your current super fund's performance. In your 50s you could still have a decade or more to grow your super, so fund performance matters. Review your fund and compare its performance to other funds on the market. Look at the 10-year performance to get a good long term view of how your fund is doing. Make sure you compare similar funds. If you have a balanced investment fund, don't compare to funds that invest entirely in high growth assets.
- Look at the fees you're paying. Everyone pays fees to their super fund. But these fees do eat into your super balance, especially over many years. If you see a super fund that offers lower fees and similar or better performance, consider switching.
- Consider your investment options. How your super is invested matters quite a lot, and your age is a big reason why. In general, younger people can afford to go for higher growth, higher risk investment options like high growth funds or funds that only invest in shares. By 50, some people may decide it's time to move their super into a more defensive investment mix, which means lower growth but also a lower chance of your balance shrinking in a market downturn. But in your early 50s you still have many years to recover from a dip in the market, so you don't have to choose a low growth option.
- Start making extra super contributions. One of the best things you can do at any age is make voluntary contributions to your super. This adds to your balance and can be quite tax effective. If you don't have much in the ways of debts in your 50s, extra super contributions can help you hit your retirement goal.
- Seek professional advice. If this all too confusing there's nothing wrong with seeking professional help from a financial advisor. Some advisors charge a one-off fee and can help you review your super and suggest options for you. An accountant can help you maximise the tax-effectiveness of your extra super contributions too.
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