How does your super balance compare to those your age?

When it comes to super, people want to know how their current balance compares with others, particularly those around their age – it’s a gauge we use to determine if ‘we’re doing OK’.

"It can give us valuable perspective on our super, but a simple comparison can also mislead us. Because what really matters with super is if the amount you end up with meets your unique needs in retirement,” explains smartMonday senior smartCoach Pat Howard.

To help you figure out the amount you may need, read through our article Do you really need $1m to retire? And use our calculators that estimate your potential balance and retirement needs.

The latest data we have on Australians’ superannuation balances is in the table below, from financial year 2020-21. (We’ll update this article when new information is released.)

To give you a rounded view of Australians’ superannuation balances, they are listed below by age group and gender, with both the median and average balances. As we don’t want this to be confusing, let’s explain why these categories are so important:

• age is usually the most significant factor in determining your balance, as your super starts small when you begin work, developing through contributions and returns to become a sizeable asset in later years

• gender is a crucial point as females tend to have lower balances – due to taking extended time out of work, often for raising children (meaning fewer super contributions in that time) – among other factors such as their greater representation in lower paid sectors of the workforce

• the median figure shows you what someone’s balance would be if they were in the middle (between the highest and lowest balance for each age and gender group)

• while the average puts all balances of one group together and tells you what the balance would be if that total amount was split evenly across every person. (As individuals with extreme balances can impact the average, the median can be a more meaningful figure.)

The figures above show that most Australians are meeting the standard for a low-spending or modest retirement, as determined by The Association of Superannuation Funds of Australia and Super Consumers Australia.

But only a third are meeting the level of a ‘comfortable’ retirement: “Currently around 30 per cent of couples and singles reach or exceed the ASFA Comfortable Standard,” stated ASFA director of research Ross Clare in his recently released report: An update on superannuation account balances.

If you want to see how you compare to the figures above then log in to your smartMonday account online and you’ll see your current account balance. Then find your age and gender group in the table above.

“Are you below average but above the median? Then you’re in the top half of that age and gender group. Are you above average and median? Then you certainly have a strong balance compared with your peers,” says Howard.

“If your balance is below the average and median, then don’t be too alarmed. Think through the kind of retirement you want. Are you like many Australians that would be happy with a modest retirement, where the age pension plays an important role in their finances? Or do you want to work toward a higher balance? If you do want to build your balance then there are ways to make your super grow, and our smartCoaches are always here to talk matters through with you.”