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Why $200,000 super can help you have a decent retirement lifestyle

If your superannuation balance is sitting somewhere around $200,000, you’re very normal!

Aussie males retiring between the ages of 60 and 64 typically finish work with $292,500 saved up, while women leave with $138,150.

That makes for an average retirement balance of $214,121.*

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Galaxy research conducted for Industry SuperFunds found, however, that just 16 per cent of workers believe $200,000 in super savings is enough for money worry-free retirement.

Instead, people who expected to have $200,000 or less in super at retirement had some pretty pessimistic projections; they expected to work past age 65 because they needed the cash for everyday expenses, to have to live a poorer lifestyle, or to simply go without.

That outlook, though, may be overly negative.

Modelling by Industry SuperFunds shows that a super balance of $200,000 can provide a healthy supplement to the Age Pension, taking the recipient into the zone where they can easily afford what’s dubbed a ‘modest’ retirement lifestyle – a considerable improvement on the deprivation existence many seem to anticipate.**

Meanwhile, if investment returns are healthy, as they draw an income, their super balance can continue to grow.

This is possible through an account-based pension.