Tuesday 17 October 2023

Australian Superannuation Averages 2023

QSuper has an interesting webpage providing details of the average superannuation balance for various age ranges for Australian Males and Females, along with a calculation of the approximate amount a person should have in superannuation now to reach the Association of Super Funds of Australia (ASFA) 'comfortable standard' balance by the time you turn 67.

For interest I plotted these figures together with the actual current superannuation balances of DS1, DS2, DW and myself to see how we compare. DS1 is tracking very well due to a combination of having had a child superannuation account to provide a solid foundation, and his current income being quite good for a recent university graduate. DS2 has just started his HSC (final) year at high school, and his child superannuation account is quite modest, but should provide a solid foundation for his future retirement savings. Especially if he makes an annual $1K contribution and benefits from the government co-contribution of $500 each year while still studying. DW is just under the calculated sum required for her age to be on track for a 'comfortable retirement' at age 67. I doubt that she will continue working until age 67 though. My super is more than adequate for my retirement needs - I mostly add to superannuation as a tax effective investment vehicle, rather than to boost my income during retirement. I have stopped making additional salary sacrifice contributions as I need the cashflow to fund my investment property investment, but earnings and SGL contributions should be sufficient to hit the transfer balance cap by age 65 when I can transfer my superannuation balance (up to the TBC) into 'pension phase' while still working full time. Transfer to 'pension phase' will reduce the tax rate applied to my superannuation earnings and realized capital gains from 15%/10% to 0%. Once I hit the TBC any further superannuation SGL contributions will remain in accumulation phase, which is still a tax effective environment for balances up to $3MM.

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