Surprising Superannuation Savings Aussies Need to Retire Comfortably: ‘Closer Than You Think’

New data has revealed how much Aussies need in their superannuation to retire comfortably, and the figures might surprise you. While the rising cost of living has pushed savings targets higher, there’s good news for many nearing retirement. Experts say you could be closer to your financial goals than you think.

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Surprising Superannuation Savings Aussies Need to Retire Comfortably: ‘Closer Than You Think’ | en.Econostrum.info - Australia

Rising cost of living pressures have increased the amount Australians need saved in their superannuation to retire comfortably, according to new data. However, despite these increases, many Australians may already be closer to their retirement savings goals than they realize.

Updated Superannuation Targets for Retirement

Data from Super Consumers Australia shows retirees with medium or high spending needs now require 10 to 15 percent more in their superannuation savings compared to last year. Encouragingly, super balances have grown by about 13 percent over the same period, helping to offset the impact of rising expenses.

Super Consumers Australia CEO Xavier O’Halloran stated that these targets serve as a useful “rule of thumb” for retirees who own their homes, with benchmarks based on actual retiree spending patterns. For those planning for a comfortable retirement, these figures provide a clear savings goal.

Comparison to Other Retirement Standards

Another widely referenced benchmark from the Association of Superannuation Funds of Australia (ASFA) offers a slightly different perspective. According to ASFA’s standards:

  • Singles need $51,814 annually to retire comfortably, requiring $595,000 in super savings.
  • Couples need $73,031 annually, requiring $690,000 in super savings.

These amounts reflect assumptions about retirees’ expenditure levels and the rising costs associated with maintaining a “comfortable” lifestyle.

Tips to Boost Your Superannuation Savings

For working Australians looking to enhance their superannuation, strategies such as salary sacrificing could provide significant benefits. A study by the Super Members Council found that a 30-year-old earning an average income could grow their retirement savings by an additional $67,000 by salary sacrificing just $20 per week.

Julian Mauro, CEO and accountant at Mauro, emphasized the tax advantages of salary sacrificing. Contributions made to super are taxed at a concessional rate of 15 percent, compared to personal income tax rates, which can be as high as 47 percent, including Medicare.

“If someone’s tax rate is only 30 percent, they’re still saving 15 percent tax by salary sacrificing. For those on higher tax rates, the benefits can be even greater,” Mauro explained.

While the rising cost of living has pushed savings targets higher, the growth in superannuation balances and accessible strategies like salary sacrificing can make a comfortable retirement achievable for many Australians.

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