Am I Saving Enough for Retirement? Super Adequacy Check for Australians

If you're reading this article, you're probably lying awake at night wondering whether your super balance is going to be enough. You're not alone.

Don't skip this part. A 2024 survey by the Financial Planning Association found that retirement adequacy is the number one financial concern for Australians aged 35 to 60, outranking housing affordability, debt, and day-to-day expenses. The anxiety is understandable — retirement is the largest financial commitment most people will ever face, yet it's also the one we've the least visibility into. You can look at your mortgage and know exactly when it will be paid off.

You can check your savings account and know your balance to the cent. But retirement involves projecting decades into an uncertain future — how long you will live, what investment returns will be, what inflation will do to your purchasing power, whether the Age Pension will still exist in its current form, and what healthcare costs will look like in 30 years. The good news is that you don't need to predict the future perfectly.

You need to understand where you stand today, identify whether there's a gap, and take action to close it if there's. A gap identified at 35 or 40 is eminently solvable.

A gap discovered at 60 is much harder to fix. The single best thing you can do right now is check — and our Money Check tool provides an immediate, honest assessment of your retirement readiness based on your current age, super balance, income, and savings rate.

Here's a simple rule of thumb for checking whether your super is adequate for a comfortable retirement at 67. Take your current annual salary and multiply it by the factor for your age: age 30 multiply by 0.5 to 0.7, age 35 multiply by 1.0 to 1.4, age 40 multiply by 1.5 to 2.2, age 45 multiply by 2.3 to 3.3, age 50 multiply by 3.5 to 5.0, age 55 multiply by 5.0 to 7.0, age 60 multiply by 6.5 to 9.0.

The practical side: If your super balance falls within the resulting range, you're broadly on track. If it's below the lower end, you need to take action. If it's above the upper end, you're in excellent shape.

For example, a 40-year-old earning $90,000 should have super of approximately $135,000 to $198,000 (1.5x to 2.2x). If their balance is $100,000, there's a meaningful gap that needs to be addressed. If it's $180,000, they're well positioned.

This rule of thumb assumes standard employer contributions, average investment returns, and retirement at 67. It doesn't account for career breaks, part-time work, self-employment periods where super was not paid, or multiple accounts eroded by duplicate fees.

These factors are common and can explain why many Australians find themselves below the benchmark. For a more precise assessment, use our Retirement Calculator which models your specific income, contribution rate, expected returns, and desired retirement age. Pair it with the Money Check tool for a holistic view of your financial position beyond just super.

Several common factors cause super balances to fall behind benchmarks, and understanding the cause helps identify the right solution. Career breaks and part-time work significantly reduce super accumulation because no employer contributions flow during gaps, and lower hours mean lower contributions.

What actually happens: Women are disproportionately affected — the average super balance for women at retirement is roughly 25% to 40% lower than for men, primarily due to career breaks for caring responsibilities and the gender pay gap. Taking five years out of the workforce or working part-time during that period can create a super gap of $80,000 to $150,000 that's difficult to recover without intentional catch-up contributions. Multiple super accounts are another common culprit.

The average Australian has 1.4 super accounts, and many have three or more from different employers over their career. Each account charges administration fees ($50 to $200 per year) and insurance premiums ($500 to $2,000 per year), silently eroding your balance. Consolidating to a single fund eliminates duplicate fees and simplifies management.

Wrong investment option is surprisingly prevalent. Many Australians have their super in a default balanced or lifecycle option that may not be optimal for their age and risk tolerance.

If you're under 45 and in a conservative option, you're likely leaving significant returns on the table — the difference between a conservative and growth option over 20 years can be $100,000 or more on a $100,000 starting balance. Unpaid employer contributions are more common than most people realise — the ATO estimates $3.4 billion in unpaid super per year. Check your contributions against your pay slips, and if there are discrepancies, report it to the ATO and verify your employment entitlements at FairWork Mate.

The strategies for closing a super gap depend on how large the gap is and how many years remain until retirement. For a small gap (under $100,000 below target with 15-plus years to retirement): Increase your salary sacrifice by $100 to $200 per week.

Here's the thing. This modest increase, compounded over 15 to 20 years, can add $150,000 to $300,000 to your final balance. Review your investment option — switching from balanced to growth for the remaining accumulation period can add significant returns. Ensure you're in a low-fee fund — compare your fund's fees and returns against competitors on the ATO's YourSuper comparison tool.

For a medium gap ($100,000 to $250,000 below target with 10 to 20 years to retirement): Salary sacrifice the maximum concessional contribution ($30,000 per year minus employer contributions). Use carry-forward provisions to contribute unused cap amounts from the previous five years if your balance is below $500,000. Consider making after-tax (non-concessional) contributions of up to $120,000 per year if you've accessible savings that are not needed for other goals.

For a large gap ($250,000-plus below target with less than 15 years to retirement): Combine maximum salary sacrifice with non-concessional contributions. Consider the spouse contribution tax offset if your partner has lower super.

Review your retirement timeline — working two to three additional years can close a significant portion of the gap. Assess whether downsizing your home could fund a downsizer contribution (up to $300,000 per person). Review your expected Age Pension entitlement — a partial pension can supplement a below-target super balance.

Use our Superannuation Calculator to model the impact of different catch-up contribution levels on your projected balance. Pretty straightforward once you know.

Let's break this down. Superannuation is the cornerstone of retirement funding, but it's not the only pillar. Investments held outside super — shares, ETFs, investment property, term deposits — provide flexibility that super can't.

Specifically, they can fund the gap between your desired retirement age and super preservation age (currently 60). If you want to retire at 55, you need five years of income from accessible sources before you can draw on super. At a comfortable retirement income of $52,000 per year, that's $260,000 in non-super assets needed to bridge the gap.

Even if you plan to retire at the standard age, having investments outside super provides optionality — the ability to reduce working hours, take a sabbatical, handle unexpected expenses, or change plans without being locked into a rigid timeline. The tax treatment differs between super and non-super investments. Inside super (pension phase), investment earnings are tax-free.

Outside super, investment earnings are taxed at your marginal rate (with concessional treatment for capital gains held over 12 months and dividend franking credits). Despite the tax disadvantage, non-super investments offer full liquidity and no withdrawal restrictions.

A balanced retirement strategy uses both: super for the bulk of long-term retirement income, and non-super investments for flexibility, bridging, and contingencies. Use our Money Check tool to assess your total retirement readiness across both super and non-super assets, and our Retirement Calculator to model different scenarios including early retirement.

Quick reality check. The worst thing you can do about retirement savings anxiety is nothing. Avoiding the numbers doesn't change them — it just means you discover problems later when the solutions are harder and more expensive.

The best thing you can do is check where you stand right now and take one concrete action this week. Start with our Money Check tool — it takes a few minutes and gives you an immediate, honest assessment of your financial position including retirement readiness. It will tell you whether your super is on track, whether your savings rate is adequate, and where the biggest opportunities for improvement lie.

Then use our Retirement Calculator for a detailed projection — input your current super balance, annual salary, contribution rate, desired retirement age, and expected retirement income. The calculator will show you whether your current trajectory delivers your desired outcome, and if not, how much additional saving is required. Check your super balance and contribution history through myGov.

If you've multiple accounts, consolidate them. If you suspect unpaid contributions, report them to the ATO.

If you're employed and want to verify your pay and entitlements, use FairWork Mate — incorrect pay directly reduces your super contributions because super is calculated as a percentage of your salary. If you may be eligible for government benefits that could reduce your current expenses and free up more for saving, check at BenefitsMate. Every dollar you contribute to your retirement savings today has decades to compound.

Worth knowing: A $5,000 contribution at age 35 grows to approximately $35,000 by age 67 at 7% annual returns. The same contribution at 55 grows to only $10,000. Time is your most valuable asset — don't waste it wondering.

Check, plan, and act.