What Should My Super Balance Be At Every Age? Navigating Aussie Super
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- Опубликовано: 9 июн 2024
- In this video I show you the average and median balance of Australian Super accounts, at every age. This video aims to empower you with the right insights which allow you to benchmark your savings rate with the rest of the country in your peer group. Saving for retirement is important, and the Australian Super scheme is an excellent vehicle to do so. With an employer contributed rate of 11%, rising to 12% next year, the scheme has of course absorbed a huge amount of capital which now stands as the world's fourth largest retirement scheme after the US, UK, and Canada.
Discover the startling superannuation gap between men and women in this video. We dissect how systemic issues, from pay disparities to promotion bias, contribute to significant differences in retirement planning and savings. Understand the key figures that reveal this disparity at various life stages - from young workers to those 75 plus tapping into their reserves. This analysis is crucial for anyone interested in achieving an equitable financial future and understanding the broader societal structures impacting retirement savings.
Sorry to anyone that already watched this video on Friday - had an issue with the background music but we're back up now!
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// TIMESTAMPS
► 0:00 Intro
► 0:20 What is Australia's Super Scheme?
► 1:59 What is the Right Super Balance?
► 3:21 Average Super Balance by Age and Gender
► 9:09 Gender Disparity in Super Balances
► 9:52 Outro
Disclaimer:
I am not a financial adviser. This video is for education and entertainment purposes only. Seek professional help before making any investment decision.
Song: Too Fast - Ooyy
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power of compounding. The earlier one save in such a low tax environment the more compounding upon retirement.
I reckon the 18-24 male lead is probably due to the trades. 25-29 is probably the degrees paying off. 30-34 I agree probably no super during maternity leave. 35-39 maybe compound interest?
I wonder if there's data purely on contributions.
You say people can start drawing at 65, but people can start drawing at 60 with very easy to meet conditions, fully if you stop working or partially for most. (it was younger for many current retirees). 65 is only the age if you're still working full time for the same employer and want to withdraw while continuing to work (which for most people is probably not something they will do anyway as they'll want to still be contributing).
Yes that's correct. The preservation age sits at 60, from which retired and semi-retired can start accessing their super.
There are a few things that need to be considered when looking at the difference in super balances between men and women across the different age groups. It's not accurate or as simple as "systemic issues".
- there were proportionally less women in the workforce in the 80s, 90s, and early 2000s (stats will show older women to have less super).
- coinciding with more women in the workforce, the age when women have children has steadily increased since the 80s from early 20s to early 30s. When women left the workforce for children, this typically meant several years of no super contributions.
- women live longer than men and inherit their partner's super when they die (explains the sharp catchup in super balances later in life).
- many blue collar workers and labourers are often forced to retire earlier (also contributes to reduced differences in later years). Overwhelmingly, men perform these jobs.
- similarly, men/boys (by far the majority) who decide to take up a trade instead of university, are able to build up their super earlier.
More recent generations in the workforce are choosing not to have children, and now with similar participation in the workforce by both men and women, we will start to see figures for recent generations to be very similar between men and women.
Hey Brent , really nice video ! I was wondering if I could help you with Best Quality Editing in your videos better than your Editor and also make a highly engaging Thumbnail which will help your videos to reach to a wider audience ? Pls let me know what do you think ?
Heya! I'm fine at the moment, but thanks for reaching out!
This can't be right. Low income earners and non earners drag the averages down. If you've been working since your 20's you should be well above this scale. But awesome insight.
Given the median is lower than the average the reality is exactly the opposite of what you are describing. High income earners are skewing the average. (Which is to be expected, there is virtually no limit to how much one can earn).
I think part of the reasons why this is relatively low is that its current form is relatively recent. A lot of older people have lost a lot of it in high fee low performance funds.
I think there are things the government should fix as well. There house be no cap or tax below a certain super balance for each age (to allow people to catchup when they have a late start).
Div293 shouldn’t apply for balances below a certain cap.
As a counterpart, they should definitely prevent folding it into an expensive home to “fake poorness” and get the maximum pension.
You either work for a super fund or dont understand spending habits as people age. It's been proven time and time again that ASFA and the super funds massively overstate what is required for a comfortable retirement. They have a huge vested interest to scare people and get them to contribute as much money as possible to rake in high fees. If these facts were true, the major of Australians currently aged over 67 would be destitute.
Looks more like they understate it TBH. Though yes, theoretically there are other options, like reverse mortgages which aren't taken into account. If you've been a beneficiary of the last few decades of home price growth you're probably well off regardless. But if you're not a home owner, even a 'modest' figure given here probably leaves you destitute.
Not sure why you’re coming at me for ASFA’s findings lol everyone has a different perception of what a comfortable retirement is to them. If yours is lower, then that’s fine!
I retired last year and did a careful study of my outgoings in the first year to ascertain what my spending exactly looks like.
Critical spending (single, home owner, no "pensioner" discounts) was as follows
- House expenses : Utilities, rates, household insurance $4100
- Car expenses : rego, insurance, fuel, servicing $3500
- Food & household stuff $4000
- Mobile & internet $1800
- Health insurance $1500
The very basics to survive cost $14900. This did not include household repairs/maintenance/improvements, entertainment (inc alcohol), holidays, doctors or anything to do with having fun. If you're not paying for a mortgage or renting, it is surprising how little it costs to live. But the tradeoff is living is more than just surviving and you need to spend more to have fun with friends/family and do the things that you enjoy. I worked out that without a holiday, it cost another $25000 to do this
Saying womens is like saying goodera, common your an aussie get it right.
Sorry, couldn't understand what you meant here
@@BrentColeman So you pronounce woman as you did in the video when you are referring to one woman. You do not pronounce it that way when you are referring to more than one woman, it is pronounceed more like wimen, even though it is spelt the same way.
The goodera bit is akin to it, we do not say that was goodera when something is better than before, we say that was much better.
@@gordonflash8976 I mean, one could also highlight the proper use of your and you're above right
these numbers are super low
bum da tissss
TDLR - Biological women have children, then once the child is of school age they work harder and close the gap.