At age 40, your superannuation balance will vary depending on factors like your gender and career path, but average figures can provide a helpful benchmark. For individuals aged 40-44, the average super balance for males is approximately $139,431, while for females, it's around $107,538.
These figures represent the average balances held by Australians in this age bracket and can serve as a guide to see how your superannuation savings compare.
Understanding Super Balances by Age
Superannuation balances tend to grow significantly as you progress through your career due to ongoing contributions and investment earnings. The table below illustrates typical average super balances for different age groups, highlighting the progression leading up to and through your 40s.
| Age Group | Average Male Balance | Average Female Balance |
|---|---|---|
| 35–39 | $95,937 | $75,785 |
| 40–44 | $139,431 | $107,538 |
| 45–49 | $190,716 | $142,037 |
| 50–54 | $246,955 | $182,167 |
Data represents average super balances by age group.
It's important to note that these are averages, not necessarily a target for everyone. Your ideal super balance will depend on your individual retirement goals and lifestyle expectations.
Factors Influencing Your Super Balance
Several key factors contribute to the size of your superannuation balance:
- Contributions: The more you and your employer contribute, the faster your super grows. This includes compulsory employer contributions (Super Guarantee) and any voluntary contributions you make.
- Investment Performance: The investment options you choose for your super fund and their performance over time significantly impact your balance. Higher returns generally lead to faster growth.
- Time: The longer your money is invested, the more it benefits from compounding returns, where your earnings also start earning returns.
- Fees: Fees charged by your super fund can eat into your returns. Regularly checking and comparing fees is crucial.
- Breaks in Employment: Periods out of the workforce, such as for parental leave or unemployment, can slow down super growth due to a lack of contributions.
- Gender Pay Gap: Historically, the gender pay gap and career breaks often taken by women have contributed to lower average super balances for females compared to males.
Tips for Boosting Your Super at 40
If your current super balance is below the average, or you simply want to ensure a more comfortable retirement, there are several strategies you can consider:
- Review Your Super Fund:
- Consolidate Accounts: If you have multiple super accounts from previous jobs, consider consolidating them into one fund to avoid multiple sets of fees and simplify management.
- Check Fees: Compare the fees charged by your fund against others. Even small differences can add up over time.
- Review Investment Options: Ensure your investment strategy aligns with your risk tolerance and time horizon. At 40, you still have a long investment horizon, potentially allowing for growth-oriented options.
- Consider Voluntary Contributions:
- Salary Sacrificing: Arrange with your employer to contribute a portion of your pre-tax salary directly into super. This can be a tax-effective way to boost your balance.
- After-Tax Contributions: You can make personal contributions from your after-tax income, which might make you eligible for a government co-contribution if you meet certain income thresholds.
- Track Your Super Regularly: Use your super fund's online portal or app to monitor your balance, contributions, and investment performance. Staying informed helps you make timely decisions.
Understanding your current position relative to averages and taking proactive steps can help you build a healthier super balance as you approach retirement. For more detailed insights into superannuation and how much you should have, reputable resources like UniSuper offer further information on super by age.
