How much superannuation should you have at age 40?

The amount of superannuation you should have at age 40 will depend on how much money you want to have available when you retire. This, in turn, will depend on how much money you expect to spend each week to support your modest or comfortable retirement lifestyle.

Using the Super Balance Detective calculator from the Association of Superannuation Funds of Australia (ASFA), an individual born in 1984 should have $156,000 in their super fund when they turn 40 in 2024 to enjoy a comfortable retirement. 

This assumes:  

• A pre-tax wage income of just under $65,000 per annum
• The Superannuation Guarantee contribution rate increasing in line with current law
• Contributions tax being deducted at the rate of 15%
• Investments making returns of 6.7% before fees and taxes
• Administration fees of $100 per annum
• Insurance premiums of $100 per annum

(The reported figure is intended for illustrative purposes only. It should not be relied upon for making financial or product related decisions. This information is of a general nature only.)

Keep in mind that because every Australian's financial situation is different, the exact balance you’d need in your super fund by age 40 to enjoy a comfortable retirement could vary. 

How can you check your super balance?

You can check your current superannuation balance by:

• reviewing the statements from your super fund;
• logging into your super fund online, or;
• by using myGov to manage your super information via the Australian Tax Office (ATO).

You can use your balance’s average annual rate of growth (including employer contributions, investment returns, and any salary sacrifices and/or non-concessional contributions you make), minus any fees you pay, to estimate the balance that may be in your super fund by the time you reach your intended retirement age. A superannuation calculator may be able to help you crunch these numbers and estimate how much super you should have in your fund by age 40.  

How much super should you have to retire?

ASFA has published its Retirement Standard since 2004, which estimates how much Australian singles and couples would need in their superannuation account to enjoy their lifestyle in retirement.

These Standards are updated regularly, and in the March 2024 quarter showed that a modest or comfortable retirement would require the following weekly expenditures:

Here is the superannuation balance you would need to fund that level of spending:

These budgets assume that the retirees own their own home outright and are relatively healthy. The budgets for a modest lifestyle are so much lower than for a comfortable lifestyle because it should be easier to qualify for a far bigger age pension.

What if you don’t have enough super by 40?

Whether you’ve already turned 40 or not, if it’s looking like your super balance won’t grow fast enough to support you in the retirement lifestyle you want, there are options available for you to consider.

Some ways you could potentially increase your super balance include:

• Consolidating any other super funds you may have open
• Making personal contributions, including salary sacrifices
• Changing your investment option to a growth fund
• Switching to another super fund that may offer higher returns and/or lower fees

Remember to compare super funds and consider how the risks and benefits could relate to your financial situation before making changes to your super fund and/or your retirement plans. Consider contracting a financial adviser for recommendations specific to your own financial situation and personal goals.

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