As a nation, we’ve been contributing to super for 31 years. And despite this, the reality is, most Australians only get their act together on their superannuation growth strategies in their 50s and 60s. Before this, they are busy raising their kids and paying off their mortgages and have little left over for long-term savings. And that means many people in the next decade will be scrambling to put together enough super to live comfortably in their retirement – despite the trillions of dollars in the retirement system.
The median superannuation balance of people aged between 55 and 74 in Australia currently sits somewhere between $150,000 and $200,000, well below the amount that the Australian Superannuation Funds Association (ASFA) says will afford you a comfortable retirement. A comfortable retirement, according to ASFA requires you to have $595,000 for singles and $690,000 for couples in your superannuation, as well as access to a part pension. And this assumes you own your own home outright. So if you are one of the average pre-or-post retirees who simply don’t have this much in super, how do you manage your FORO?
I’ve watched many retirees navigate life with this fear, and live full and energetic lives.There’s no easy answer, but I’ve put together some practical steps you can take so you can at least reason with your fears.