Super expert says workers need to save up seven times their salary to retire comfortably

Australian workers will miss out on a comfortable retirement unless they start doubling their contributions, a superannuation expert says.

The average employee has only $253,000 in super as they approach 65.

Super Ratings chairman Jeff Bresnahan, however, said workers needed to have seven times their annual salary before tax in their superannuation accounts if they wanted to retire comfortably.

Australian workers will miss out on a comfortable retirement unless they start doubling their contributions, a superannuation expert says

For someone on an average full-time $82,000 salary, that means having $574,000 saved up.

‘It depends on existing salary, existing lifestyle, what you actually want to do in retirement,’ he told Daily Mail Australia today.

‘As long as you manage it well.

‘Clearly, you can’t go from an $80,000 salary and suddenly take a $30,000 overseas trip every year.’

Super Ratings chairman Jeff Bresnahan said workers needed to have seven times their annual salary before tax in their superannuation accounts if they wanted to retire comfortably

Super Ratings chairman Jeff Bresnahan said workers needed to have seven times their annual salary before tax in their superannuation accounts if they wanted to retire comfortably

Australian Bureau of Statistics gender indicators data released on Tuesday showed men over 55 had an average of $310,145 in super compared with women, who had a much smaller $196,409.

Compulsory superannuation did not debut until 1992, and back then employer contributions were at a much lower level than the current nine per cent.

Mr Bresnahan said many older workers would retire with insufficient super because they started saving later in life.

‘The people who are retiring now haven’t got to enjoy the full benefits of compulsory super,’ he said.

For someone on an average $82,000 salary, that means having $574,000 saved up by the time they retired

For someone on an average $82,000 salary, that means having $574,000 saved up by the time they retired

While more women are studying at university and graduating, they are earning slightly less in their first full-time job, taking home $59,000 a year compared with $60,100 for men

While more women are studying at university and graduating, they are earning slightly less in their first full-time job, taking home $59,000 a year compared with $60,100 for men

Salary levels also determine the level of employer super contributions.

While more women are studying at university and graduating, they are earning slightly less in their first full-time job, having salaries of $59,000 a year compared with $60,100 for men.

ABS program manager Dean Bowley said the gender pay gap had barely moved during the past decade, even though 45 per cent of women had a degree compared with just 32 per cent of men.

‘The gender pay gap has remained stable over the last decade, with women earning 89 per cent of the earnings of men, taking into account the differences in working hours,’ he said.

‘Superannuation balances for women approaching retirement are 37 per cent lower than men.’ 

Read more at DailyMail.co.uk