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The Australian
5 days ago
- Business
- The Australian
How much super you need for a comfortable retirement revealed
The average 30-year-old Australian earning the median wage is on track for a comfortable retirement for the first time, forecasters have revealed. The milestone comes from analysis by the Association of Superannuation Funds of Australia (ASFA), and was down to mandatory 12 per cent superannuation payments becoming a reality. 'This is a major milestone in Australia's retirement system,' ASFA chief executive Mary Delahunty said. 'With the super guarantee increase to 12 per cent, we are seeing super fulfil its objective of providing a dignified retirement for ordinary Australians, with today's 30-year-olds reaping the rewards of decades of progress in our world-class super system.' From July 1, workers' superannuation guarantee rate increased from 11.5 per cent to 12 per cent, meaning employers pay 12 per cent equivalent amount of your earnings into super. Unpaid super is a concern in many casualised industries. Proponents of the increase in super payments say the change addresses some effects of generational inequalities in Australia. Picture: NewsWire The bump to 12 per cent tips today's 30-year-olds into a comfortable retirement, the Association of Superannuation Funds of Australia modelling says. The increase means about an extra $20,000 come retirement time. The test-case 30-year-old needs to be on at least the median wage though, which is about $75,000. The average Australian wage is $102,741. 'With the 12 per cent super guarantee coming in, we can now say that the system foundations are cemented for young, working people to have a comfortable retirement,' Ms Delahunty said. 'It's a moment all Australians should be proud of.' A comfortable retirement means being able to pay for health insurance, a decent car, phone and internet, regular leisure activities, an annual domestic holiday and an international holiday every seven years. The analysis shows younger workers should be on track for a comfortable retirement. Picture: NewsWire / Gaye Gerard The amount needed to tick these boxes is $595,000 as a single homeowner and $690,000 combined for a homeowning couple. A retiring renter needs an extra 30 per cent. As well as being positive news for Australians only a decade or two into their working lives, the super guarantee increase to 12 per cent has also been heralded as a win for women. Modelling on the change, done by super fund HESTA, projects the increased payments will enhance the stark difference between younger women and women retiring now. Under HESTA's modelling, a woman starting her career in 2025 was now projected to have $712,000 of super when she retired; $411,000 more than the average female retiring this year. At the moment, the average Australian male aged in his early 60s has $395,000 in super, versus $313,360 for women. Blair Jackson Reporter Blair's journalism career has taken him from Perth, to New Zealand, Queensland and now Melbourne. Blair Jackson
News.com.au
5 days ago
- Business
- News.com.au
Super boost shunts millennials into comfortable retirement, super fund says
The average 30-year-old Australian earning the median wage is on track for a comfortable retirement for the first time, forecasters have revealed. The milestone comes from analysis by the Association of Superannuation Funds of Australia (ASFA), and was down to mandatory 12 per cent superannuation payments becoming a reality. 'This is a major milestone in Australia's retirement system,' ASFA chief executive Mary Delahunty said. 'With the super guarantee increase to 12 per cent, we are seeing super fulfil its objective of providing a dignified retirement for ordinary Australians, with today's 30-year-olds reaping the rewards of decades of progress in our world-class super system.' From July 1, workers' superannuation guarantee rate increased from 11.5 per cent to 12 per cent, meaning employers pay 12 per cent equivalent amount of your earnings into super. Unpaid super is a concern in many casualised industries. The bump to 12 per cent tips today's 30-year-olds into a comfortable retirement, the Association of Superannuation Funds of Australia modelling says. The increase means about an extra $20,000 come retirement time. The test-case 30-year-old needs to be on at least the median wage though, which is about $75,000. The average Australian wage is $102,741. 'With the 12 per cent super guarantee coming in, we can now say that the system foundations are cemented for young, working people to have a comfortable retirement,' Ms Delahunty said. 'It's a moment all Australians should be proud of.' A comfortable retirement means being able to pay for health insurance, a decent car, phone and internet, regular leisure activities, an annual domestic holiday and an international holiday every seven years. The amount needed to tick these boxes is $595,000 as a single homeowner and $690,000 combined for a homeowning couple. A retiring renter needs an extra 30 per cent. As well as being positive news for Australians only a decade or two into their working lives, the super guarantee increase to 12 per cent has also been heralded as a win for women. Modelling on the change, done by super fund HESTA, projects the increased payments will enhance the stark difference between younger women and women retiring now. Under HESTA's modelling, a woman starting her career in 2025 was now projected to have $712,000 of super when she retired; $411,000 more than the average female retiring this year. At the moment, the average Australian male aged in his early 60s has $395,000 in super, versus $313,360 for women.
Perth Now
5 days ago
- Business
- Perth Now
Huge super balance milestone revealed
The average 30-year-old Australian earning the median wage is on track for a comfortable retirement for the first time, forecasters have revealed. The milestone comes from analysis by the Association of Superannuation Funds of Australia (ASFA), and was down to mandatory 12 per cent superannuation payments becoming a reality. 'This is a major milestone in Australia's retirement system,' ASFA chief executive Mary Delahunty said. 'With the super guarantee increase to 12 per cent, we are seeing super fulfil its objective of providing a dignified retirement for ordinary Australians, with today's 30-year-olds reaping the rewards of decades of progress in our world-class super system.' From July 1, workers' superannuation guarantee rate increased from 11.5 per cent to 12 per cent, meaning employers pay 12 per cent equivalent amount of your earnings into super. Unpaid super is a concern in many casualised industries. Proponents of the increase in super payments say the change addresses some effects of generational inequalities in Australia. NewsWire Credit: News Corp Australia The bump to 12 per cent tips today's 30-year-olds into a comfortable retirement, the Association of Superannuation Funds of Australia modelling says. The increase means about an extra $20,000 come retirement time. The test-case 30-year-old needs to be on at least the median wage though, which is about $75,000. The average Australian wage is $102,741. 'With the 12 per cent super guarantee coming in, we can now say that the system foundations are cemented for young, working people to have a comfortable retirement,' Ms Delahunty said. 'It's a moment all Australians should be proud of.' A comfortable retirement means being able to pay for health insurance, a decent car, phone and internet, regular leisure activities, an annual domestic holiday and an international holiday every seven years. The analysis shows younger workers should be on track for a comfortable retirement. NewsWire / Gaye Gerard Credit: News Corp Australia The amount needed to tick these boxes is $595,000 as a single homeowner and $690,000 combined for a homeowning couple. A retiring renter needs an extra 30 per cent. As well as being positive news for Australians only a decade or two into their working lives, the super guarantee increase to 12 per cent has also been heralded as a win for women. Modelling on the change, done by super fund HESTA, projects the increased payments will enhance the stark difference between younger women and women retiring now. Under HESTA's modelling, a woman starting her career in 2025 was now projected to have $712,000 of super when she retired; $411,000 more than the average female retiring this year. At the moment, the average Australian male aged in his early 60s has $395,000 in super, versus $313,360 for women.
Daily Mail
5 days ago
- Business
- Daily Mail
How much superannuation you should have right now based on your age - so are you ahead or behind?
Fresh analysis suggests many average-income Australians are already on track for a comfortable retirement - but experts are divided on how much is really enough. For the first time, the Association of Superannuation Funds of Australia (ASFA) projects that a 30-year-old earning the median wage of $75,000 is now on track to retire comfortably, thanks to July's increase in the superannuation guarantee to 12 per cent. According to ASFA's projections, a 30-year-old with a current super balance of $30,000 and a steady median income until retirement at age 67 would retire with about $610,000 in superannuation. That's more than the $595,000 the organisation says is needed for a single homeowner to retire comfortably. ASFA CEO Mary Delahunty called it a 'major milestone' in the evolution of Australia's retirement system. 'This is a major milestone in Australia's retirement system,' said ASFA CEO Mary Delahunty. 'With the super guarantee increase to 12 per cent, we are seeing super fulfill its objective of providing a dignified retirement for ordinary Australians, with today's 30-year-olds reaping the rewards of decades of progress in our world-class super system.' How much super you should have for your age according to the AFSA AGE 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 SUPER BALANCE $5,500 $11,000 $18,500 $26,000 $34,000 $41,500 $50,000 $59,000 $66,500 $74,000 $83,000 $93,000 $101,500 $111,500 $122,500 $133,000 $144,000 $156,000 $168,000 $179,000 $190,000 $201,000 $213,000 $226,000 $239,000 $252,000 $266,000 $281,000 $296,000 $311,000 $328,000 $344,000 $361,000 $377,000 $393,000 $415,000 $431,000 $453,000 $469,000 $490,000 $509,000 $531,000 $549,000 $571,000 $584,000 According to ASFA Australians need $690,000 in super savings for a couple, or $595,000 for a single person, by age 67 to enjoy a comfortable retirement. These estimates are based on the assumption that you own your home outright, receive a part Age Pension, and achieve an average annual investment return of 6 per cent. But many Australians are falling short of that target. For those aged 60 to 64, the average super balance is around $395,000 for men and $315,000 for women. The median balances are significantly lower - $220,000 for men and just $163,000 for women. The average can be skewed upward by a small number of people with very large super balances, while the median gives a better sense of what a typical person has. Bestselling finance author Scott Pape said Australians could retire comfortably with far less than ASFA's recommended amounts, which he argued were unrealistic for most people. 'If you own your own home, get the aged pension, and you're willing to do a bit of paid work, you could comfortably retire on as little as $250,000,' he said on his Barefoot Investor website. 'The people who calculate the ASFA figure are … the super fund lobby. It's a bit like asking old Dr Kellogg, 'What's the most important meal of the day?' (Breakfast, of course!)' Pape pointed to alternative estimates he believes are more practical, citing research by Super Consumers Australia and the Australian Bureau of Statistics. 'A group called Super Consumers Australia (a partner of CHOICE) has done the research and come up with their own figures. Not only are their figures much more attainable, they're based on ABS research on what Aussie retirees spend.' According to Super Consumers Australia, a single homeowner needs about $310,000 in super, while a couple needs around $420,000 at retirement to maintain their current lifestyle. 'Combined with income from the age pension, homeowners with this amount of super can reliably provide an annual amount of $43,000 and $62,000 until age 90,' the organisation said earlier this year.
AU Financial Review
05-08-2025
- Business
- AU Financial Review
Life insurance is still a super idea
In FY24 alone, super funds paid out $1.7 billion in death benefits and $3 billion in permanent disability payments – providing vital support to Australians when it mattered most. This is a powerful demonstration of the role super funds play in protecting Australians – not just in retirement, but throughout life's most challenging moments. Still, there's room to do more. Many members don't realise what cover they have or how to tailor it to their needs. Default cover is a great starting point but it differs significantly between funds. Without engagement or advice, members are unlikely to tailor their cover and instead rely on default settings that may not suit their individual needs. Regulatory changes introduced since 2019 – such as restrictions on default insurance for younger members or those with low balances or inactivity – were designed to protect retirement savings, but they've also led to gaps in coverage. ASFA estimates that 11,000 Australians are now missing out on $1.5 billion in disability benefits each year. Super funds are working hard to close these gaps by helping members engage early and make informed choices about their insurance needs – so they don't miss out on the protection they may need most. Underinsurance has broader social implications. When individuals aren't adequately protected, the burden shifts to families, communities, and taxpayers. Increased reliance on government support places pressure on public systems designed to support vulnerable Australians. In today's cost-of-living crisis, the financial shock of losing a loved one can push families into immediate hardship. Without adequate death cover, many would struggle to meet basic expenses like rent, groceries, and school fees – let alone plan for the future. Life insurance through super can provide a vital buffer, helping families maintain stability during one of the most difficult times in their lives. While Australians are more likely to hold permanent disability cover, it's income protection that often makes the biggest difference in the early stages of illness or injury. Without it, a temporary setback can quickly spiral into a permanent crisis. Early financial support can mean the difference between recovery and long-term disability. Nearly half of Australians have three months or less in savings if they're unable to work. Women are particularly vulnerable – 35 per cent couldn't cover expenses beyond one month. Income protection provides a critical safety net, offering regular payments to help people stay afloat while they recover. Many funds offer the ability to take up income protection and tailor the level of cover. Doing this through super allows people to balance current protection needs with saving for retirement – and importantly, it's funded through super rather than as an out-of-pocket expense. At Acenda, we're proud to partner with super funds to help members understand and optimise their insurance cover. We're passionate about improving outcomes and driving innovation that supports Australians through every stage of life. Super funds play a vital role in building a more secure future for Australians – and the more the industry optimises the experience, the better the outcomes for members, their families, and the broader community. So Australians can continue to take life on. This article is general in nature and was prepared without taking into account the objectives, financial situation or needs of any individual. Please consider the appropriateness of the information in this article having regard to your own objectives, financial situation and needs and obtain your own financial advice if you need to do so. Please also consider the product disclosure statement of any financial products you are considering before making any decision about them.
