What you need in super

WORKERS who fear they will have insufficient funds once they retire can check for the first time if their superannuation is on track.

The Association of Superannuation Funds of Australia (ASFA) has today released new figures to show people exactly where their retirement balance should be sitting at age 30, 40, 50 and 60.

To achieve a comfortable retirement, singles need $545,000 into superannuation and couples require $640,000 by age 67, while also owning home their outright and having good health.

These balances presume retirees are drawing down on their super and receiving a part age pension.

The data reveals for singles earning $70,000 a year they should have $50,000 at age 30, while for Australians earning $100,000 they could reach these balances for a comfortable retirement by having no super savings at that age.

By age 60 a person earning $70,000 per annum should have $425,000 tucked away, while that late starter on $100,000 should have accumulated $410,000.

ASFA chief executive Dr Martin Fahy urged Australians to check to see if their balances are on track or “take action now.” “You have got to start thinking about extra contributions but with more and more broken patterns of employment people should start to accumulate a bit quicker more than the default 9.5 per cent of compulsory super,’’ he said.

“There’s this sense that we might all be able to work as long as we want but we need to be careful that we are not overconfident in that assumption.”

A comfortable retirement will enable retirees to be involved in leisure activities, have a good standard of living by being able to freely purchase household goods, private health insurance, drive a good car and take both domestic and international holidays.

The superannuation guarantee – compulsory employer contributions – has remained at 9.5 per cent but is planned to reach 12 per cent by 2025.

Intrust Super’s chief executive officer Brendan O’Farrell also urged Australians to review their super, consolidate multiple accounts and consider tipping more in if they had the means.

The alternative was a retirement shortfall.

“You could be reliant fully on the age pension,’’ he said.

For top saving tips see P19-22