Australians need nearly $600k in superannuation for a comfortable retirement, new report reveals

Australians will need nearly $600,000 in their superannuation to enjoy a comfortable retirement, new figures show.

According to the Association of Superannuation Funds (ASFA) Retirement Standard, the latest analysis shows home-owning singles would need $595,000 to retire at 67 with a “comfortable” lifestyle, while a home-owning couple in relatively good health would need $690,000.

WATCH THE VIDEO ABOVE: How much you’ll need to retire comfortably.

Annually, this would mean home-owning couples would need $73,337 per year while home-owning singles would need slightly less, at $52,085 per annum for a comfortable lifestyle.

According to the report, for a more “modest” lifestyle, singles would need $33,134 per annum. Couples, on the other hand, would need $47,731, annually, to enjoy a more dialled-down lifestyle.

A superannuation balance of $100,000 is needed for a modest lifestyle for a single or couple, according to the same report.

Both budgets assume the retirees own their homes outright and are relatively healthy.

On Wednesday, financial commentator Betsy Westcott appeared on Sunrise, saying Australians needed to start thinking about retirement earlier, in order to make the most of their savings.

“The longer that you contribute to super and pay attention it to it, the less you have to do to create that really golden retirement because age is your superpower,” Westcott said.

“If you’re not paying attention to your super, which, let’s be honest, most of us aren’t, you could be missing out on some really big gains (to the overall balance).”

Westcott said most people retired closer to 65, rather than 67 and ended up with a lot less superannuation than the benchmark.

Westcott said the (ASFA) retirement standard took into account “everyday spending,” but it did not factor in expenses such as helping children buy a home, or buying into a retirement village.

She also stressed the figures were just a guide and individual needs differed.

“Those benchmarks are a really handy guide, but they’re just a guide. Personal finance is just that, it is personal,” Westcott said.

“Your idea of a golden retirement will look different to your neighbour’s, your cousin’s, your best friend’s.

“It is really important to get advice from a qualified financial advisor who can take into account your health, do you own your own home, what is your lifestyle like?

“Have you got a champagne taste and more of a beer budget? Then put together a plan around what kind of funds you need to accumulate to support that lifestyle for you.”