How Much Super Should You Have at 40? Average Balances vs ASFA Targets

According to ATO superannuation statistics (2022-23), the average super balance for Australians aged 40–44 is approximately $130,000 for men and $92,000 for women. For the 35–39 bracket, it's $97,000 (men) and $72,000 (women). The median balance at 40 is lower — around $60,000–$80,000 — meaning more than half of 40-year-olds have less than the average.

These figures reflect the reality that many Australians have had periods of part-time work, career changes, self-employment, or caring responsibilities that reduce super accumulation. If your balance is near the median, you're tracking with most Australians your age.

But if you want a comfortable retirement, you'll likely need to take action to boost your contributions (and yes, this applies to casuals too).

To retire comfortably at 67, ASFA estimates you need $595,000 (single) or $690,000 (couple). Working backwards with assumed 7% annual returns and 12% SG contributions, you'd ideally have $150,000–$200,000 in super by age 40. This is significantly higher than the average balance, which shows most Australians are behind the comfortable retirement target.

However, a modest retirement — covering basic living expenses — requires only about $100,000 at age 67, which most people will reach with standard SG contributions alone. The gap between where you are and where you need to be determines how aggressively you should consider salary sacrificing or making additional voluntary contributions.

At 40, you still have 27 years of compound growth — enough time to make a meaningful difference.

At age 40, the gender super gap is significant — men have approximately 40% more super than women on average ($130,000 vs $92,000). This $38,000 gap at 40 compounds dramatically over the remaining career. By retirement, the average woman has roughly 25–30% less super than the average man.

Contributing factors include: the gender pay gap (women earn approximately 13% less for comparable work), higher rates of part-time employment (40% of women vs 15% of men), time out of the workforce for caring, and the concentration of women in lower-paid industries. Since 1 July 2025, the government pays super on Paid Parental Leave, which helps.

If you're a woman at 40 with a balance below $92,000, salary sacrificing even $50/week could add $100,000+ to your retirement balance.

1) Salary sacrifice aggressively — at 40, you're likely in your peak earning years. Salary sacrificing $100–$200/week into super is tax-effective and can add $200,000–$400,000 to your retirement balance. 2) Use the carry-forward rule — if your super balance is under $500,000, you can carry forward unused concessional contribution cap space from the previous 5 years.

This lets you make a large one-off contribution, such as from an inheritance or bonus. 3) Consolidate multiple super accounts — if you've had several jobs, you may have 2–3 super accounts each charging admin fees and insurance premiums.

Consolidate via myGov. 4) Review your investment option — at 40 with 27 years to retirement, a growth or balanced option is generally appropriate. Check if you're in a default option with conservative allocation that may be underperforming. 5) Check your employer is paying — use our Superannuation Calculator to verify each pay period.

For 2025-26, you can contribute up to $30,000 per year in concessional (pre-tax) contributions, which includes your employer's SG, salary sacrifice, and personal deductible contributions. The tax rate on concessional contributions is 15% — much lower than most people's marginal rate. You can also make up to $120,000 per year in non-concessional (after-tax) contributions, or use the bring-forward rule to contribute up to $360,000 in a single year if your balance is under $1.68 million.

If you earn over $250,000 (income plus concessional super contributions), you'll pay an additional 15% Division 293 tax on your super contributions. Understanding these caps is essential for anyone at 40 looking to aggressively build their super without paying excess contribution penalties.