There are a lot of factors that go into answering this question, and the answer will be different for everyone depending on their current situation and plans for retirement.
So what are some of the factors that determine how much superannuation you'll need?
Likely the most important factor in determining how much superannuation you'll need will be what you plan to do in retirement.
What sort of lifestyle do you want to live?
How much income will you need to fund that lifestyle?
Will you be taking regular holidays in retirement?
Will the holidays be in Australia staying at BnB's or will you be travelling overseas and staying at lavish hotels?
Will you be going out for dinner once or twice a week?
How much would you like to help your children?
Would you like to spoil your grandchildren?
What sort of social or extra curricula activities are you planning to do?
How will your superannuation be invested in retirement?
Depending on your answer to these questions, the amount of superannuation you'll need could differ quite a lot.
This is why I find it so frustrating when I see statements like "you need $1,000,000 to retire". Statements like this are general in nature and probably won't apply to your specific situation. It may be the case if you want to go out for dinner multiple times a week, take regular overseas holidays and you ignore that you may be eligible for an age pension at some stage. Maybe that's not you though. For example, I want to travel round Australia and play golf, I wouldn't need much for that.
So what are some of the factors that determine how much superannuation you'll have?
Again, there are quite a few factors, but are some of the most important:
When do you plan to retire? The more time you have between now and retirement, the more time you have to make a difference and grow your superannuation. So the sooner you get started, the better.
How much are you contributing to superannuation? Are you making some contributions yourself? Or are you just relying on the contributions your employer makes on your behalf?
How is your superannuation invested? It seems obvious, and it probably is, but the bigger the returns your superannuation makes leading up to retirement the more you'll have.
What are the fees you're paying? Its not always wrong to pay additional fees, perhaps paying the additional cost will get you a better outcome overall. But you shouldn't pay extra for the same outcome. So its worth knowing your options.
Where to start?
To get started, there are some tools like the one on the Moneysmart website (see the link below) that can give you a guide to how much you'll need.
Ultimately though, its probably worth having a chat with someone and getting some personalised advice based on your specific needs and objectives. We'd love it if you chose us to help, so please feel free to give us a call or book an appointment.