How Much Should I Have in Super at 40 and 50? (The Benchmarks That Actually Matter)
- 12 minutes ago
- 2 min read
Most “super benchmarks” you see online compare 'average super balances'.
But if you’re a high‑income earner, business owner, or professional, those numbers don’t tell you whether you’re actually on track for the retirement you have dreamed of.
A far better question is:
“Am I on track to reach the tax‑free retirement limit by age 60?”
That limit is called the Transfer Balance Cap (TBC). It’s currently $2.1 million, but it doesn’t stay there.
Treasury expects the cap to increase by around 3% per year, which means the real target at age 60 is significantly higher.
When you factor in this indexation — along with long‑term investment growth — you get a much clearer picture of what your super balance should look like today.
What You Should Have in Super at 40 and 50
Based on long‑term projections and the expected growth of the TBC, here are the benchmarks that matter.
At Age 40:
You should aim to have around:
$560,000 in super
This puts you on track to reach the future, indexed tax‑free pension cap by age 60.
At Age 50:
You should aim to have around:
$1.15 million in super
This reflects the shorter time frame and the higher projected cap at retirement.
These numbers aren’t about comparing yourself to others — they’re about ensuring you’re positioned to take full advantage of Australia’s most powerful tax structure.
Why These Benchmarks Matter
Superannuation is still the most tax‑effective way to build wealth in Australia. However, the system rewards people who plan early and make informed decisions.
These benchmarks help you answer the real question:
“Will I have enough to fund the lifestyle I want — tax‑free — in retirement?”
If you’re below the benchmark, it doesn’t mean you’re behind; It simply means your strategy needs to work a little harder — and that’s where advice makes a meaningful difference.
Why Getting Advice Early Makes a Big Difference
The difference between getting advice at 40 versus 50 can easily be hundreds of thousands of dollars in retirement savings.
Not because you earn more, but because you:
invest more efficiently
save more diligently
use tax and contribution rules properly
avoid costly mistakes
make decisions with a long‑term plan
Super is a 30‑year strategy. Small decisions compound into life‑changing outcomes.
If you would like to get on track:
Assumptions
Income: $200,000
SCG: 12%
Net contributions after 15% tax: $20,400
Net Investment return: 8% p.a.
Indexation: 3% p.a.
Retirement age: 60
The purpose of this blog is to provide general information only and the contents of this blog do not purport to provide personal financial advice. We strongly recommend that investors consult a financial adviser prior to making any investment decision. The contents of the our blog does not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making any financial or other decisions. The information is selective and may not be complete or accurate for your particular purposes and should not be construed as a recommendation to invest in any particular product, investment or security. The information provided on this blog is given in good faith and is believed to be accurate at the time of compilation.
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