About Super

How Much Should You Contribute?

Statistical evidence presents the reasonable probability that to maintain your current lifestyle purely via superannuation, you will need to contribute at least 15% of your salary over your working life. This is much higher than the superannuation guarantee contribution paid by your employers.

According to results released from the Westpac-ASFA Retirement Living Standard Benchmark released in February 2004, a single person needs about $420K to live comfortably in retirement. This in itself is not surprising. What is, however, is that the current average amount saved at retirement is only around $70k.

As Phillippa Smith, Association of Superannuation Funds of Australia (ASFA) CEO reports, "Younger people will have the benefit of the 9 per cent SG throughout their working lives, achieving savings of about $170k (for someone on average weekly earnings and assuming a working life of 30 years)”  However, even this amount still falls way short of the $420k required.

More information on this subject is available at www.superannuation.asn.au.