Latest news with #SuperannuationFunds
News.com.au
08-08-2025
- 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.
Daily Mail
08-08-2025
- 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.
