New research shows most Australians aren’t voluntarily topping up their superannuation, which comes with a list of pros and cons in the long run.

Superannuation is compulsory in Australia, forcing workers to set aside a share of their wages – currently 10.5 per cent – to secure their retirement income.

Many people are leaving their superannuation settings on autopilot, trusting they will have a sizeable nest egg by the time they retire.

A Finder survey reveals only 14 per cent make regular contributions to their fund, and nearly half have no intention of bulking up their balance.

There are different views on how much super a retiree needs; the Association of Superannuation Funds of Australia suggests $545,000 is needed for a comfortable retirement at 67.

Meanwhile, Super Consumers Australia says retirees at this age with ‘medium’ spending can safely retire with just $259,000.

Cruz Financial Planning partner and director Cody Harmon said both of these figures are far too low, with even a sum of about $500,000 being ‘‘pretty bare bones’’ for a retiree with no mortgage.

‘‘When you look at whether or not it’s the right amount of money, it depends on where the individual’s spending patterns are heading,” he said.

‘‘When you retire, are you going to go backwards in lifestyle, or are you going to go forwards?

‘‘You’re going to want that extra holiday, spoil your grandkids, and to be honest, you’re not going to sit at home and be bored.’’

Although he said Australians might need to aim for a higher-than-recommended super based on their individual spending needs, Mr Harmon said this doesn’t mean you should salary sacrifice.

Too much super not a good thing

Finder superannuation expert Alison Banney said if you can afford it, sacrificing between $100 to $200 of your wages per month could make a huge difference in retirement, thanks to compounding interest.

But Mr Harmon said while you should make sure you’re set up for retirement, you should also enjoy your current stage of life.

For example, he said rather than going to your super, extra money could be better spent towards your dream family home, especially considering main residences are generally exempt from Capital Gains Tax.

He said having too much in your super account could also hurt your chances at getting an age pension.

To receive the maximum age pension, your fortnightly income needs to be under $180 if you’re single, and under $320 a fortnight if you’re in a couple.

For every dollar earned over these limits, your pension will reduce by 50 cents per single person or couple.

As your home is not counted as an asset when calculating the age pension, Mr Harmon said in some situations you could be better off investing in the house, location and the lifestyle you want rather than ‘‘chucking’’ extra money into your super.

‘‘There is a benefit to salary sacrificing when you’re deriving your income,” he said,

‘‘But if I’m able to raise my kids in a better property, and have a 20- or 30-year loan term, and have no capital gains tax on that asset, am I really going to be salivating at the thought that I can salary sacrifice extra money now?

‘‘There’s tax benefits either way, [but] they’re not attractive enough for someone like me to forgo the ability to make sure the home is right first.’’

He said given the super system is difficult to navigate, making it hard for the average person to comprehend it and make informed decisions, he recommends getting professional financial advice if you can afford it.