Jess Bell recently discovered she had more than double the average superannuation balance for someone of her age. (Source: TikTok\/@_jess.bell_) <\/p>\n
A young Aussie has shared how she amassed a superannuation balance<\/a> more than double the average of someone her age. Aussies are being urged to take a look at their retirement nest eggs<\/a>, after nearly a third admitted they had no clue what their balance was<\/a>.<\/p>\n Financial adviser Jess Bell has nearly $130,000 in her superannuation account<\/a>. The 30-year-old told Yahoo Finance this meant her balance was \u201cmore than double\u201d the average for men and women in her age bracket, which is currently $55,690 and $46,586, respectively.<\/p>\n Bell said one reason why she was ahead was because she has been salary sacrificing<\/a> for the last 10 years. Salary sacrificing is when you \u2018sacrifice\u2019 part of your pre-tax salary and add it directly into your super account<\/a>.<\/p>\n RELATED<\/p>\n \u201cI started off with $50 a week. After tax it was $36 and it didn\u2019t feel like I was having to sacrifice a lot. I just thought surely any little bit is better than nothing and if I start from the get-go then I\u2019m not going to notice the difference,\u201d Bell said.<\/p>\n Bell said she increased the amount she was salary sacrificing<\/a> to $75 a week a couple of years ago and is considering bumping it up to $100 a week next year.<\/p>\n \u201cI\u2019ve got to take into consideration what my employer contributions are as well [and] make sure that I stay within the total concessional contribution cap,\u201d she said.<\/p>\n Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/p>\n Bell said doing research at the start of her career and comparing superannuation funds also helped her grow her super, including ensuring she was with a low-cost fund<\/a> and her investments suited her personal risk profile.<\/p>\n \u201cI think it\u2019s really important for people when they\u2019re looking at their super to understand all of their options within their funds, especially those industry funds where you do sort of pick off-the-shelf items, it is really important to make sure that it\u2019s aligned to their preferences,\u201d she said.<\/p>\n Bell said the compounding impact<\/a> of her super distributions was another reason why her super had \u201cgrown quite astronomically\u201d in comparison to the average.<\/p>\n If you\u2019re wondering how your superannuation stacks up, the Australian Taxation Office (ATO)<\/a> has revealed the average balances for men and women in different age brackets.<\/p>\n This is based on its most recent data from the 2022-23 financial year.<\/a><\/p>\n Story Continues <\/p>\n Age<\/p>\n Male<\/p>\n Female<\/p>\n Under 18<\/p>\n $7,687<\/p>\n $4,699<\/p>\n 18 to 24<\/p>\n $9,062<\/p>\n $8,163<\/p>\n 25 to 29<\/p>\n $27,021<\/p>\n $24,821<\/p>\n 30 to 34<\/p>\n $55,690<\/p>\n $46,586<\/p>\n 35 to 39<\/p>\n $96,122<\/p>\n $76,020<\/p>\n 40 to 44<\/p>\n $140,680<\/p>\n $109,209<\/p>\n 45 to 49<\/p>\n $193, 501<\/p>\n $147,146<\/p>\n 50 to 54<\/p>\n $254,071<\/p>\n $190,175<\/p>\n 55 to 59<\/p>\n $319,743<\/p>\n $242,945<\/p>\n 60 to 64<\/p>\n $395,852<\/p>\n $313,360<\/p>\n 65 to 69<\/p>\n $448,518<\/p>\n $392,274<\/p>\n 70 to 74<\/p>\n $501,785<\/p>\n $449,540<\/p>\n 75 or more<\/p>\n $525,627<\/p>\n $454,333<\/p>\n The Association of Superannuation Funds of Australia (ASFA) estimates that to retire comfortably<\/a>, a single homeowner would need $595,000 and a couple would need $690,000.<\/p>\n This would give them $52,383 and $73,875 annually with a mix of super and a part-age pension.<\/p>\n ASFA\u2019s Super Detective tool<\/a> has estimated that a 30-year-old today would need an average balance of $66,500 to retire comfortably at the pension age of 67.<\/p>\n A 40-year-old would need $168,000, those aged 50 would need $296,000, and someone who is 60 would need $469,000. These calculations are based on receiving a relatively modest wage of $65,000 a year.<\/p>\n For Aussies who are considering salary sacrificing<\/a>, Bell said it was important to keep in mind the concessional contribution cap, which is currently $30,000 per year.<\/p>\n \u201cPart of those contributions are also made up of the employer or the super guarantee contributions,\u201d Bell said.<\/p>\n If you have unused cap amounts from previous years, you may be able to carry them forward<\/a> to increase your caps in later years if your total balance is less than $500,000.<\/p>\n Bell said it was also worth considering your marginal tax rate<\/a>, as salary sacrifice contributions are taxed at 15 per cent when they go into super.<\/p>\n \u201cSo if you\u2019re on a 16 per cent marginal tax rate, the difference between tax is 1 per cent,\u201d she said.<\/p>\n \u201cYou kind of need to think about if the overall purpose is just to add more to super, or do I also want to be considering what it\u2019s doing to my overall tax position?\u201d<\/p>\n Bell said you could use MoneySmart\u2019s calculators<\/a> or pay calculators to get an idea of how salary sacrificing could impact your tax and take-home pay.<\/p>\n You\u2019ll also need to be happy to sacrifice the amount in your super and know you won\u2019t be able to access it for a long period of time.<\/p>\n \u201cThere are a few considerations for people, it\u2019s certainly not something that everybody should do because it doesn’t make sense for everybody,\u201d she said.<\/p>\n Findex research found only 30 per cent of Australians knew their super balance to the nearly $1,000 and a further 30 per cent only had a vague idea of their balance or had no idea at all.<\/p>\n Recent Commonwealth Bank research<\/a> similarly found 33 per cent of people didn\u2019t know their super balance, while 11 per cent had never checked it at all.<\/p>\n Bell has encouraged people to engage with their superannuation and said some people may be in for a \u201crude shock\u201d when they retire otherwise.<\/p>\n “It is going to be, for most people, the second largest asset that you have in your life outside of your home. So why wouldn’t you worry about that?” she said.<\/p>\n \u201cBe proactive and take control of managing your super. It is crucial for your financial future.”<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n