Does this balance sound okay

by Ben Kemp

A common question asked by many, “does this balance sound okay?”.

It is a bit of a mystery, “the super balance”.  Not so much to find out what you have, but to get a guide on how it actually stacks up for you. Human nature shows us that we like to know where we sit, both in relation to “the average” but also in relation to where we want to be in our personal journey.

I’ve included a couple of links below that show some data around what people can expect their balance to look like and also what is deemed to be the “balance for a comfortable retirement”.

These numbers are potentially more hinderance than help if you’re trying to consider your retirement position, as they fail to take into account so many factors (literally everything other than super balance!).

Some key reasons why super balance can be deceiving in isolation when considering retirement:

  • How much income do YOU expect/need in retirement?
  • Do you have other sources of income apart from super?
  • Do you have debt that may need to be extinguished?
  • Are there any lump sum expenses at the beginning of retirement such as a caravan, etc.?
  • Do expect a lump sum from business or asset sale around or during retirement?

Some key reasons why super balances for people vary greatly:

  • How many years have you been working and being paid super?
  • Has your income recently increased (or decreased)?
  • Have you been making additional contributions?
  • Have you got insurance premiums inside your super?
  • Is your super invested appropriately?
  • Do you have multiple super funds?

What to do:

  1. Find out what you have in super
  2. Ask for help to determine how this stacks up in your personal journey
  3. Work on a plan to ensure your super is complimenting your other financials to meet your overall personal needs!

This blog contains information that is general in nature. It does not take into account the objectives,
financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

If you decide to purchase or vary a financial product, your financial adviser, AMP and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.

PB Financial Solutions Pty Ltd ABN 67 097 381 523 – trading as Burke Britton Financial Partners & Securelife Financial Solutions is an authorised representative and credit representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee and Australian Credit Licensee.

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