Approximately 80,000 to 87,000 individuals in Australia have superannuation balances exceeding $3 million, representing less than 1% (roughly 0.5%) of all super members. This high-balance group is largely aged over 60, with around 55% being male, and is expected to be impacted by proposed tax changes aimed at this top bracket.
In June 2021 there were about 55,000 individuals with a balance over $3 million, up from around 35,000 in June 2019. Given recent investment returns and further contributions, the Treasury estimate that by July 2025 there will be around 80,000 individuals with more than $3 million in superannuation is quite reasonable.
Research shows that less than 1% of households have $3 million or more in retirement savings. While this amount is uncommon, those who consistently invest, save diligently and manage their spending can build significant retirement assets over time.
Only around 3.1 per cent of households have very high total balances of over $2 million. Around 1.4 per cent or 142,000 households have more than $3 million in superannuation.
According to the Employee Benefit Research Institute, just 1.8% of U.S. households have $2 million or more saved in retirement accounts. That's based on the 2022 Survey of Consumer Finances, conducted by the Federal Reserve.
Data from the Employee Benefit Research Institute, which utilizes the Federal Reserve's Survey of Consumer Finances, indicates that only about 0.1% of retirees have over $5 million saved for retirement. Additionally, about 3.2% have savings exceeding $1 million.
Keeping this in perspective - only . 8% of US families have $3M in retirement : r/Fire.
The new $3 million super tax is a proposed tax change that will impose an additional 15% tax on investment earnings, including unrealised gains, for super balances exceeding $3 million.
The short answer: to retire on $80,000 a year in Australia, you'll need a super balance of roughly between $700,000 and $1.4 million. It's a broad range, and that's because everyone's circumstances are different.
That said, many experts recommend withdrawing 3% for early retirees. You say you've read it's possible to pursue an early retirement after attaining $2 million, and that may very well be the case for some people. But it isn't the ideal figure for you if it means you and your wife aren't happy anymore.
Very few people retire with $4 million; it's a rare milestone, placing someone in the top tier of wealth, likely the top 2-3% of households, but far from the ultra-wealthy, with most Americans having significantly less (median retirement savings around $87k). Reaching $4 million requires extreme discipline, starting early, consistent investing, and living below one's means, making it an exceptional achievement, not the norm.
In the organisation's super balance update, it found 2.5 per cent of the population have a super account of more than $1 million, as of June 2021. This represents 417,567 individuals, ASFA said, and is a 29 per cent increase from the 322,200 individuals who held over $1 million in June 2019.
Retirement savings in your 70s
Americans in their 70s have an average retirement savings balance of $1,020,318; the median is $436,144, putting some 70-year-olds in the retirement millionaire bracket.
Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).
Key Takeaways. Top earners across the United States earn nearly least six figures, with an average income of over $99,971 for those in the top 10% in 2022. Earners in the top 1% need to make $1 million annually in states like California, Connecticut, Massachusetts, New Jersey, and Washington.