Financial adviser James Wrigley encouraged Aussies to consider extra contributions if they wanted to boost their super balance. (Source: TikTok/@iamjameswrigley/Getty)
The superannuation balance you would need to be in the top 10 per cent across different age groups has been revealed. Superannuation balances have hit a record high, with employers now required to put 12 per cent of your earnings into your retirement fund.
For those hitting or approaching retirement at age 60 to 64, the latest Australian Taxation Office (ATO) data revealed the top 10 per cent of males had more than $993,785 stashed away in superannuation. The top 10 per cent of females had more than $769,800 in their retirement savings.
Financial adviser James Wrigley told Yahoo Finance that while comparison to others wasn’t the best thing to do, it could serve as a “starting point” when taking stock of your super.
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“If people are looking at those numbers, whether they think they’re low or whether they think they’re high, different people will have a different view on it,” he said.
“The more important thing is, rather than trying to compare to others, it’s taking stock of what you’ve got.
“Is there some work that you need to do in improving what you’ve got? Or have you done a really great job and you’ve got a lot in there now?”
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Age
Male
Female
Under 20
$5,269
$4,307
20 to 24
$22,816
$20,770
25 to 29
$57,995
$52,131
30 to 34
$117,787
$99,587
35 to 39
$206,958
$164,874
40 to 44
$305,064
$243,589
45 to 49
$426,783
$332,432
50 to 54
$583,059
$432,454
55 to 59
$762,968
$576,249
60 to 64
$993,785
$769,800
65 to 69
$1,111,841
$960,606
70 to 74
$1,226,845
$1,090,274
The average superannuation balances, of course, are much lower than this.
For those in the 60 to 64 age group, the average balance for males was $417,604, which is less than half of those in the top 10 per cent. The average balance for females was lower at $320,224.
Wrigley posted a video to his social media about the data and found there was one “overwhelming” factor that people in the top 10 per cent had in common.
“They all said that they’d been contributing extra money to their superannuation for a long time,” he told Yahoo Finance.
“So you can learn from what others are doing. Super is a long game. The more that you can contribute for the longer period of time, you’re going to have a better outcome there.”
As your balance gets larger, Wrigley said your investment returns can make a bigger impact on your balance.
Even contributing small amounts can be better than nothing, but it does depend on your individual circumstances.
If you’ve got a big credit card bill or other big debts, you want to put any extra cash towards paying this off first.
“If it’s just a mortgage, for example, that you’ve got and you’re contemplating, do I put more into my mortgage or more into my super?” Wrigley said
“Often, the maths says more into super is the better way to go.”
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