Latest news with #MaryDelahunty
News.com.au
4 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
4 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
4 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.
The Australian
05-08-2025
- Business
- The Australian
How much super you need to retire comfortably for your age
The Australian Business Network Building a big enough nest egg to retire comfortably is a key goal for millions of Australians, and today's young adults are much better placed than their parents to achieve it. An analysis of average super account balances, and the nest eggs required for a comfortable retirement, suggests Australians aged under 30 and earning median wages will have enough in superannuation to allow them to retire in comfort. 'Comfortable' is the key word, and its definition can vary widely, but broadly-accepted numbers come from the Association of Superannuation Funds of Australia's ASFA Retirement Standard, a benchmark study of retiree spending needs that has been produced quarterly for 21 years. ASFA has estimated that to retire comfortably on a mix of super and a part-age pension, a new retiree needs $595,000 as a single homeowner and $690,000 for a homeowner couple combined. This will deliver them annual incomes of $52,383 and $73,875, respectively, and cover living costs including private health insurance, a 'reasonable' car, fast telecommunications, regular leisure activities, domestic holidays annually and an international holiday every seven years. While the July 1 rise to 12 per cent compulsory employer superannuation guarantee contributions gives young workers a full career of solid super injections, older generations have not benefited from that and many have balances that struggle to reach a comfortable level. ASFA chief executive Mary Delahunty said for Australians aged between 60 and 64, men had an average super balance near $395,000 and women had $315,000. 'The median figures are lower, $220,000 for males and $163,000 for females,' she said. However, the trend is improving and the fact that many retirees live with a partner helps them combine their nest eggs to deliver a decent retirement. 'Most retirees aged 65 today are in a couple household,' Ms Delahunty said. 'Based on the combined super balance and other financial assets held, just over 30 per cent of retirees are at the comfortable standard, and that's up from 25 per cent a decade ago,' she said. 'By 2050 that percentage will increase to around 50 per cent for couples.' Super funds provide projections of members' final super balances on websites and in annual statements, and there are other online calculators that help people work out if their balance today is high enough. For example, ASFA's Super Detective tool has estimated that if you are aged 25 today and have $26,000 in super, you are on track to retire comfortably at the pension age of 67. If you're 30, the figure jumps to $66,500, and it gets dramatically larger after that. Today's 40-year-olds need a balance of $168,000, those aged 50 require $296,000 and someone who has just turned 60 needs $469,000, although all these calculations are based on a relatively modest wage of $65,000 a year. JBS Jenny Financial Strategists chief executive Jenny Brown said it was 'absolutely' important to know what super balance you would need and how you were placed towards reaching it. 'It's a matter of working out what we call your financial freedom number – how much do you need to retire?' she said. 'That's working out what you are spending and what lifestyle you want when you retire. 'And what age is retirement? Is it 60, 65 or 70, or as soon as you possibly can?' Ms Brown said people should check their super was performing as expected, and that they were not overpaying on fees. 'You have got to plan for the future,' she said. Tribeca Financial chief executive Ryan Watson agreed people should have an idea of what their final retirement super balance will be. 'This provides people with a financial goal with which to aim and can enable them to make adjustments if they look like they may end up with insufficient funds to provide for their retirement,' he said. Tips to grow your nest egg Mr Watson's top tips to help super savers build a big balance include: • Review your account now by checking fees, investment performance and insurance benefits, which can significantly impact your final balance. • Make extra contributions to super, such as salary sacrificing. • Seek strategic financial advice. • Take a more active interest in your superannuation. 'Knowledge is power, and will dramatically increase a final retirement superannuation balance,' he said. Super guarantee boost Mr Watson said the super guarantee's recent increase to 12 per cent would provide a significant improvement to the final retirement balance of young Australians. 'At 12 per cent, this equates to a 33 per cent increase from where SG superannuation has traditionally been at (9 per cent). As such, it is likely that more Australians in 20 to 30 years' time will be retiring a lot more comfortably.' ASFA recently calculated that the 12 per cent super guarantee meant a 30-year-old today earning a median wage of $75,000 until retiring at 67 should be able to accumulate $610,000 in super, more than the necessary $595,000, a figure which factors in average inflation. Ms Delahunty said this was a major milestone and showed the strength of the super system benefiting from the right level of regular contributions and strong investment returns compounding over time. 'It's showing that it is really delivering for people in retirement and delivering savings to the public purse as a result,' she said. 'You will see a government that can make different decisions about public services as they will not be spending as much on the pension, especially when you compare it to other OECD countries. 'You can actually sit in this country today and imagine life as a retiree that is the same standard that you have in your working life. That's what we should be able to do as a prosperous nation.' Ms Delahunty said Australians were engaging with their super more because they wanted to know how they were going to live in retirement. Super funds can help with projections, education and tools, she said. 'The other really good education tool that people have available to them is ASIC's Moneysmart website. ASIC does a really good job of simply explaining some of the concepts. 'It's a good idea to have an understanding of how that nest egg can grow.' Read related topics: Need to know Wealth Anthony Keane Personal finance writer Anthony Keane writes about personal finance for News Corp Australia mastheads, focusing on investment, superannuation, retirement, debt, saving and consumer advice. He has been a personal finance and business writer or editor for more than 20 years, and also received a Graduate Diploma in Financial Planning.
News.com.au
27-06-2025
- Business
- News.com.au
‘Financial disadvantage': Super boost to close gender gap
Major superannuation changes are set to roll out across the country starting from July 1, set to help millions of women bridge the gender pay gap. Starting next Tuesday parents taking government-funded paid parental leave will also receive a superannuation payment. This additional payment is estimated to help the near 200,000 Australian mothers each year and narrow the gender superannuation gap by around 30 per cent. According to the ASFA a woman taking 24 weeks leave the superannuation contributions will lead to $7,200 more at the time of retirement. When the regime is extended to 26 weeks, the boost to the super balance increases to around $7,800. ASFA chief executive Mary Delahunty said this is a major win for Australian women who take time out of the paid workforce to have and raise children, and helps reduce the superannuation gender gap. 'While compulsory superannuation has been delivering on its purpose of providing a dignified retirement for most Australians, it's long been known that women are often financially disadvantaged in retirement due to time taken out of work to have and raise a family. she said. 'The introduction of superannuation payments on government paid parental leave from 1 July on will go a long way to closing the gender superannuation gap.' Australian treasurer Jim Chalmers said paying super on paid parental leave from this Tuesday is part of our efforts to ensure parents earn more, keep more of what they earn and retire with more as well. 'A sornger paid parental leave system is good for families and good for the economy as well,' he told NewsWire. 'This important change means a more dignified and secure retirement for more Australian parents and especially women.' A second change which will see nearly 14 million workers will see their superannuation guarantee increase from 11.5 to 12 per cent starting from July 1. While the changes seem small, the treasury uses an example of a 27 year old woman who has taken up a graduate position as a professional lawyer. 'During her career, she takes an extended six-year career break for the birth and care of her two children,' treasury estimates. 'Her balance will be $22,000 higher at retirement as a result of the permanent 0.5 percentage point increase in the SG rate from 11.5 to 12 per cent.' Mr Chalmers says these reforms will make a meaningful difference for millions of Australians, helping them work towards a well-deserved and dignified retirement. 'Since we've come to government, we've increased the superannuation guarantee four times, and this means an extra $98,000 at retirement for a 30 year old earning the average full-time income,' Mr Chalmers said. While the Albanese government has implemented an increase of the Superannuation guarantee from 10 to 12 per cent. It was the then Morrison government who started the changes, which saw superannuation lift from 9.5 per cent to 12, at a 0.5 per cent increment a year. The treasury department says the changes to Tuesday's superannuation guarantee will see 14 million employees have their retirement lifted. The ASFA said this increase means a median 30-year old worker making $75,000 a year will add about $20,000 to their superannuation balance by the time they retire. This $20,000 increase will mean the median 30-year old will retire with $610,000 in superannuation, above the $53,383 a year or $595,000 they would need for a comfortable retirement. ASFA says a couple requires $73,875 a year or $690,000 combined in total to live comfortably in retirement using their super plus age pension top-ups. The major caveat to these figures for singles and couples is owning your own home by retirement. The National Minimum Wage and award wages will increase by 3.5 per cent from 1 July 2025, adding $0.85 per hour to $24.95 for full time staff. Treasury estimates this change will add $75,114 over the average working life of an employee.
