Superannuation in your 30s and 40s

How much super should I have at 30?

The median super balance for 30-34 year olds is $37,061.50. Men in this age group have slightly more super than women, at $39,796 versus $34,327.

According to Finder's superannuation calculator, by 30 you need around $35,000 in your super to be on track for a comfortable retirement.

If you don't have this much saved up yet, don't worry, you have plenty of time to grow your super balance. Most people can't access their super until they're 67, which gives you another 30 years (or more!) to grow it.

How much super should I have at 40?

The median super balance for 40-44 year olds is $87,648. The gap betwen men and women's balances in this age group is more significant, at $101,231 versus $74,066.

By 40, you need a larger super balance of around $141,500 to be on track for a comfortable retirement. However according to the median figures, a lot of people are behind this target.

Even in your 40s you've still got another 20+ years to build your super, and thanks to compound returns your balance can increase greatly in this time.

How much super do you really need?

A comfortable retirmenet means different things to everyone, so the amount you need in super will also vary. The official target from The Association of Superannuation Funds of Australia (ASFA) is $595,000 for individuals, or $690,000 for couples, to have a comfortable retirement at 67.

It's important to note not everyone agrees with this - and some industry bodies suggest this figure is far too high and unrealistic for a lot of people.

The ASFA sees a comfortable retirement as being able to dine out at restaurants, travel overseas, afford top-level private health insurance, own a nice car and be able to fund major home rennovations with high-quality appliances. A comfortable retirement might mean something different to you.

How much super you'll need for a comfortable retirement by age

Examples above assume you earn $80,000, pay $300 in super fees p.a., your fund returns 7.5% p.a. and you'll retire at 67 with $595,000 in super. Data is based on Finder's superannuation calculator.

How to grow your super in your 30s and 40s

Make sure you only have one fund

You might have an old super fund open in your name from one of your first jobs that you don't use anymore. If you have more than one fund you'll be paying multiple sets of fees unnecessarily, which will eat into your retirement balance. The sooner you consolidate these into one fund, the better.

You can quickly and easily check how many super funds you have by logging into your myGov account, going to the ATO services portal and clicking on the 'Superannuation' option.

Switch to a fund with low fees

The less you pay in super fees over your working life, the more money you'll retire with. Take a look at your current super fund's fees and see how these compare to other funds.

In general, annual fees that are below 1% of your balance are considered to be reasonable. So for example, based on a $50,000 super balance that would be annual fees of $500 or less. But you can find funds with fees even lower than this too.

Consider a high growth investment option

If you're in your funds default MySuper product, check what investment mix that is. A lot of the default products are balanced investment options, which are designed to suit a wide variety of members.

But if you're in your 30s or 40s, it's generally recommended to invest in a more high-growth option instead. This is because you've got plenty of time (20-30 years!) to ride out any short-term market falls.

Shares can be volatile in the short term but continue to perform exceptionally well over the long term.

"I ignored my super balance for years. I even kept an old fund open with a few thousand dollars in it. Bad idea. Then I consolidated funds and switched from my default balanced option to a higher growth, higher risk option. This suits me because I am decades from retirement, so I can handle some volatility. And growth is my main objective. I only wish I'd done it earlier in life!"

Richard Whitten

Money Editor

Make extra contributions

When you're in your 30s or 40s you have one major advantage on your side - time! If you start making small, regular contributions early in your working life these will really help your balance grow (thanks to compound growth).

You can do this by setting up a salary sacrifice arangement with your employer so some of your pre-tax income is sent directly to your super. You can also make contributions any time yourself, and claim these as a tax deduction (provided they're within the contributions limits).

Take advantage of the government's co-contribution scheme

If you earn less than $60,400 a year you could be eligible for a co-contribution into your super by the government. This scheme is designed to give a little boost to the super balance's of low and middle income earners.

If you make your own volantary contribution into your super, the government will make its own contribution into your fund too. The amount you can receive with the super co-contribution scheme depends on how much you earn, with the maximum co-contribution amount being $500.

Impacts on your super during your 30s and 40s

Insurance needs often increase

In your 20s you may have opted out of any insurance in your super to save on fees. But in your 30s and 40s, your insurance needs will likely be much different.

Starting a family and/or buying a home is often a time when people re-evaluate their need for insurance - particularly life insurance and income protection. If this is something you're wanting, see if you can add it within your super and how the cost and level of cover compares to having a policy outside of super instead.

Less disposable income

You might be earning more money than you were in your 20s when you were just starting out in your career, but you'll likely have more expenses now too. In your 30s and 40s you could be faced with high home loan repayments, expensive daycare and school fees plus added medical expenses.

With less disposable income, you might not be able to prioritise making extra contributions to your super right now. This is okay - you can still ensure your super is set up well by reducing your fees and making sure you're in a top-performing fund.

Time out of work for children

In your 30s and 40s you might have extended periods out of the workforce while you raise children. This can have a significant impact on your super.

If you're not in paid work, you likely won't earn superannuation contributions from your employer (the super guarantee), but you'll still be paying all your same super fees. As women are more likely to take time off from work to look after children, this is something that impacts women's super balances more than men's.

Finder analysis found taking just 1 year of parental leave from full-time work will cost the average woman $16,800 in lost super. If the mother also chooses to work a 3-day week for the first 2 years of the child's life, that figure increases to $46,000 in lost super. This is just for 1 child, and would increase greatly for multiple children.

If you're planning to take time out of the workforce during your 30s and 40s, your spouse can make some contributions into your super to help keep it on track.

Using your super for a house deposit

In your 30s and 40s you might be trying to save for a house deposit, and your super can help you do this.

The First Home Super Saver Scheme allows first home buyers to withdraw a portion of their extra super contributions and use them a deposit for a property. You can access up to $50,000 in voluntary super contributions in total.

Frequently asked questions

• How much should I have in my super at age 30?

  The median super balance for 30-34 year olds is $37,061.50. By 30 you need around $35,000 in your super to be on track for a comfortable retirement.

• How much should I have in my super at age 50?

  By age 50 you should have around $270,000 in super to be on track for a comfortable retirement.

• Can I retire at 40?

  Yes, you can choose to retire at 40 (or any age) if you have enough money to do so. However you can't access your super at age 40, even if you're retired.

• Can I access my super in my 40s?

  Generally no, you can't access your super in your 40s even if you're retired. You need to wait until you reach your preservation age, which for mosst people is 67, before you can access your super.

• Is 700,000 in super enough to retire in Australia?

  $700,000 is a lot of money to retire with in Australia. The official guideline from the ASFA is for individuals to have $595,000 to retire comfortably. Depending on your lifestyle, you could retire with much less than this and still be comfortable.

Written by

Alison Banney

Editorial Manager, Money

Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise

Alison has written 639 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living