How much super do we really have at retirement? Less than you think
Rarely do we stop and discuss the reality of how much or how little money people really have in their superannuation fund at retirement age.
Every Sunday I write a column that is published in the money section of The Age, The Sydney Morning Herald, Brisbane Times and WA Today. And our community asked that I send it out the day it goes to print. So, this week’s column can be read in full here.
My full weekly Epic Retirement newsletter comes out on Tuesday; and the Prime Time podcast comes out on Thursdays at www.primetimers.net.
So enjoy this week’s article from the Nine Newspapers below and have a lovely Sunday. I’ve linked the podcast below too. It was a ripper this week!
Bec Wilson XX
How much super do we really have at retirement? Less than you think
Everyone talks about how much we need to retire in comfort in Australia. But rarely do we stop and discuss the reality of how much or how little money people really have in their superannuation fund at retirement age.
How much we each have tucked away isn’t a topic of polite conversation at barbecues, especially if we feel like it might not be enough. So today I take a deep dive into the average superannuation balances of those between 55 and 69 right now.
It’s an important set of numbers for us all to see a bit more publicly. They reveal that for the current generation of soon-to-be retirees and retirees, there’s not quite enough in most people’s accounts to be comfortable, and women are definitely in a less advantageous situation.
As we know, the Association of Superfunds of Australia (ASFA) suggests that to be comfortable Australian retirees need to have $590,000 in super if they are single when they retire, or $690,000 if they are a couple. And that’s if they have paid off their home and able to rely on a part-pension.
Yet, the Australian Tax Office’s latest superannuation statistics for the 2020/21 year show that the average superannuation balance for people aged between 55 and 59 is $277,327. For those aged 60-64 it sits at $361,539, 65-69 it is $428,738.
The difference between men and women is noticeable, with the average super balance for men aged between 55 and 59 sitting at $316,457 while for women the average, is $236,530. A gap of nearly $80,000. For those aged between 60 and 64, the average for men is $402,838 while for women it sits at $318,203 with a gap of close to $85,000. And for those between 65 and 69 years of age, the average balance for men is $453,075 whereas for women it is $403,038, with a smaller gap of $50,000.
Many people can use the last ten years before retirement to significantly improve their super balance
The average age of retirement in Australia is between 64.5 years for women and 65.3 for men right now. But preservation age, or the age you can actually start drawing down from your superannuation fund either through a transition to retirement or retirement pension, depending on your work status, is now 60 years of age. And pension age is firmly planted at 67 years, meaning many people will have to stay in the workforce until then, in the current generation.
If you are feeling pretty “average” knowing your superannuation fund is below the comfortable threshold, which, quite frankly, is the case for most Australians, there are still things you can do to try and improve your situation. Think about a few of these:
This article continues on the Sydney Morning Herald website here. It’s free to access the article - you may need to register.
Exercise for longevity: How muscle mass improves your lifespan
PRIME TIME WITH BEC WILSON PODCAST
An interview with exercise physiologist and exercise for longevity expert, Jonathan Freeman. There's so much helpful health advice packed into this one episode.
This week on the second episode of Prime Time with Bec Wilson, we learn all about how exercise, muscle mass and protein intake can help us age better. And more importantly, what types of exercise and how often.
I chat with Jonathan Freeman, a widely respected exercise physiologist and founder of Australia’s largest active over 50’s gym group, Club Active. He's a Professional Fellow with Southern Cross University and presents guest lectures in Functional Anatomy at numerous universities throughout Australia... AND he's worked with the likes of Chris Hemsworth and Kelly Slater, so he knows what he's talking about.
I learned so much about exercise, protein and muscle mass from this conversation and I’ve already adopted some of his lessons into my everyday behaviours.
Listen now:
LISTEN HERE - LATEST EDITION (S1E2) - OMNY
or listen on APPLE PODCASTS
Here’s some highlights:
According to Jonathan, only 1 in 10 Australians over the age of 50 do enough exercise to keep their hearts healthy and improve longevity. And he says physical inactivity is the biggest killer…
The three most important things you can do for your body as you age: Build your muscle mass, improve your V02 max and work on your joint longevity
He explains the way we can look at our body’s functional age, rather than our chronological age.
How people 50s-65s are looking to slow down the onset of ageing, and pointing out that our generation didn’t grow up with the gym, nor with the information and education on health and exercise that younger generations did, so we approach it differently.
The impact that our local community can have on our longevity, and considering how we can be supported to change the way we age.
Muscle mass and the muscle index score - how we measure it and how we improve it.
People over 50 who don’t currently go to a gym, need to understand structured exercise programs and their role in growing our muscle and strength - which contributes to longevity.
Cardiovascular health and your VO2 max - how we improve it, and how the various zones of cardiovascular exercise work, and where we get optimal results.
How to look after your joint mobility - and where we should focus to maintain joint function and joint longevity as we get older.
The critical role protein plays in our bodies and how much protein we should think about consuming to maintain our muscle mass
What we can learn from the Blue Zones abot incidental exercise and community
There so much information to absorb in this edition of Prime Time that I couldn’t possibly detail it all here. So have a listen, and subscribe, wherever you get your podcasts.
Enjoy and catch you with a more detailed newsletter on Thursday!