What to do if your numbers look too low

There are three steps you can take:

● Increase your contributions. These days employees can contribute 3, 4, 6, 8 or

10 per cent of your pay. And every member — employee or not — can always contribute more, either regularly or occasionally, directly to their provider.

● Move to a higher-risk fund, which will have higher average returns. Note, though, that riskier funds are also more volatile, so you have to be prepared to see your balance fall sometimes.

● Plan to work beyond 65. This helps you in two ways: you have more years of saving; and fewer years to fund in retirement. What’s more, your savings grow fast at that stage if you’re still working. Let’s say you’ve saved $500,000 at 65. Even if you earn only 3 per cent on that — after fees and tax — that’s $15,000 extra in a year, and a bit more the following year because of compounding.