Don't panic, it turns out you don't need $1 million in superannuation to retire comfortably

It would be nice to have $1 million in your superannuation account when you retire, but it's by no way essential.

Australian Institute of Superannuation Trustees boss Tom Garcia believes claims that a $1 million or more balance was needed for a comfortable retirement is causing unnecessary fear and concern among older Australians.

In a new report, he says the reality is that most Australians - including most of those starting out in the workplace today - will not retire with the equivalent of $1 million in super.

"Super doesn't exist in a vacuum. Most people approaching retirement will draw an income that is a combination of both super and the age pension," he says.

Rather than talking about the privileged few, Mr Garcia believes the focus should be on how small super balances can still make a difference to the quality of life in retirement.

The paper estimates that a typical balance of those approaching retirement in an industry fund is about $100,000 and that fewer than five out of every 1000 super fund members have $1 million or more in their super.

AustralianSuper chief executive Ian Silk says even relatively modest super balances can make a meaningful contribution to an adequate retirement income when combined with the age pension.

The combination of the age pension and an income stream taken from a relatively modest super balance of $100,000 will boost a retiree's weekly income by $110, "enough to meet the modest retirement standard".

"So rather than despair, workers with $100,000 or even $50,000 in their super accounts should take heart," Mr Silk said.