Retirement at 63: How Much Superannuation Should You Have in Australia?

Here is a look at the average superannuation balance at age 63 in Australia and its comparison with the amount needed for a comfortable retirement and what can be done to close any potential gap.

Age of 63 is an important stage in Australian retirement planning because the focus then is to ensure a comfortable retirement. At this point many Australians start to seriously consider when they can retire and how much income they will need. The size of their superannuation balance is more important than ever because it can determine whether they have enough financial independence after leaving work.

Average superannuation balance for Australian people aged 63 in FY27

There is no official figure that for Australians who are exactly 63 years old and the most useful comparison is therefore the 60 to 64 age group where balances differ significantly between men and women. Figures from the Association of Superannuation Funds of Australia (ASFA) show that Australian men aged 60 to 64 have an average superannuation balance of around $395,852.  Women in the same age group have an average balance of approximately $313,360. That is a difference of roughly $82,500 between the two groups and several factors can explain this gap. Lifetime earnings can differ between men and women because long periods outside the workforce can affect superannuation contributions. Childcare and other caring responsibilities can also lead to career breaks or fewer working hours which is why women may receive fewer compulsory super contributions and have less time for investment returns to compound.

The latest ASFA Retirement Standard estimates that a homeowner who wants a comfortable retirement at age 67 may need $630,000 as a single person and a couple may require $730,000. These estimates assume a part Age Pension and the use of retirement savings over time.

Are you on track for a comfortable retirement?

These figures may initially look concerning because the average superannuation balance for people in their early 60s is well below the amount ASFA estimates may be needed by age 67. Being below these figures does not automatically mean an uncomfortable retirement is ahead. There may still be several years of employment ahead along with additional contributions and investment returns. Retirement needs can also differ significantly based on personal circumstances. A homeowner who owns their property outright may need less retirement income than someone who still has a mortgage. The same will apply to someone who expects to rent throughout retirement because housing costs can have a major effect on the amount of savings required.

What can people do if their balance is behind?

A balance below the benchmark at age 63 does not mean that the situation cannot improve. Four years can still make a big difference when super contributions and investment returns work together. One straightforward option is to maximise suitable super contributions where possible. This can include additional concessional or after-tax contributions within the relevant rules. Even relatively small additional contributions can become significant when investment returns are added over several years. Higher return investments however come with greater market risk and the investment approach should therefore match the investor's timeframe and tolerance for losses.

The biggest advantage of early retirement planning is compounding as investment returns can generate further returns which will allow savings to grow faster over longer periods. Someone who has realized at 63 that their super balance is below the desired level has fewer years for compounding than someone who began making extra contributions in their 40s or 50s. There is still an opportunity to improve the position through continued employment and additional contributions. Sensible investment management can also play a role in building the balance over the remaining years.

ASFA also has a Super Balance Detective which can help Australians compare their super balance with age-based benchmarks and it can also help assess whether they are on track for a comfortable retirement.