How Much Super Will You Have at Retirement — 2026 Projection Guide
Most Australians will spend more time planning a holiday than they will ever spend planning their retirement. That's a confronting reality — because the gap between what people assume they'll have in super and what they'll actually have is often substantial. The compulsory superannuation system is now more than 30 years old, yet surveys consistently show that the majority of working Australians have little idea what their projected balance will be at retirement age, or whether it will be enough.
The 2025-26 financial year brings a landmark change: the Superannuation Guarantee (SG) rate has risen to 12% from 1 July 2025, the highest it has ever been. Combined with the power of compounding over decades, even modest income earners can now accumulate meaningful balances — if they understand how the system works and take a few deliberate steps to optimise it. This guide walks through the key numbers, ASFA's updated benchmarks, and the strategies that make the biggest difference.
Last updated: May 2026.
Disclaimer: This is general information only and not financial advice. For personalised superannuation advice, consult a licensed financial adviser.
Project Your Super Balance Now
Before diving into the numbers, use the tool. Leadkit's free super projection calculator lets you model your projected balance at retirement based on your current age, current balance, salary, SG rate, and voluntary contributions — including the impact of salary sacrifice. From the data we see across the Leadkit platform, users who run a super projection early in their working life are far more likely to adjust their contribution strategy before it's too late.
If you're also working with a financial planner, our financial planning fee calculator can help you estimate what professional advice is likely to cost.
ASFA Retirement Standard 2026: The Benchmarks
The Association of Superannuation Funds of Australia (ASFA) publishes quarterly benchmarks for what Australians need to fund a comfortable or modest retirement. The figures below reflect the February 2026 update — the most significant revision in three years.
ASFA assumes you own your home outright and retire at age 67, drawing a partial Age Pension.
| Lifestyle | Household | Annual Spending | Lump Sum Needed |
|---|---|---|---|
| Comfortable | Single | $51,278 | $630,000 |
| Comfortable | Couple | $72,148 | $730,000 |
| Modest | Single | $32,665 | $110,000 |
| Modest | Couple | $46,246 | $120,000 |
Source: ASFA Retirement Standard, February 2026
A comfortable retirement funds private health insurance, an annual domestic holiday and one overseas trip every few years, a reliable car, regular dining out, and good-quality food and clothing. A modest retirement covers only basic activities and is only marginally better than life on the full Age Pension.
The February 2026 revision raised the comfortable lump sum benchmarks — from $595,000 (single) and $690,000 (couple) — reflecting the cumulative impact of cost-of-living increases over the past three years.
How Much Super Should You Have by Age?
Knowing the ASFA target is useful, but working backwards to figure out what balance you need now — at your current age — is more actionable. The table below shows the approximate super balance needed at each age to stay on track for a comfortable single retirement at 67, assuming a balanced investment option returning 6.5% p.a. (before inflation) and the SG rate of 12%.
| Age Now | Target Balance (Single, Comfortable) | Target Balance (Couple, Comfortable) |
|---|---|---|
| 30 | $50,000 – $80,000 | $100,000 – $160,000 (combined) |
| 40 | $150,000 – $220,000 | $300,000 – $440,000 (combined) |
| 50 | $320,000 – $420,000 | $640,000 – $840,000 (combined) |
| 60 | $500,000 – $600,000 | $1,000,000 – $1,200,000 (combined) |
These are broad indicative figures. Your actual target will depend on your planned retirement age, whether you expect to qualify for the Age Pension, your investment returns, and inflation. Use the super projection calculator to model your specific situation.
How Employer Super Contributions Work: SG at 12%
The Superannuation Guarantee (SG) is the compulsory employer contribution rate set by the Federal Government. From 1 July 2025, it is 12% of your ordinary time earnings (OTE) — your regular salary or wages, not overtime.
What 12% Looks Like in Practice
| Annual Salary | Annual Employer SG (12%) | Monthly SG |
|---|---|---|
| $60,000 | $7,200 | $600 |
| $80,000 | $9,600 | $800 |
| $100,000 | $12,000 | $1,000 |
| $120,000 | $14,400 | $1,200 |
| $150,000 | $18,000 | $1,500 |
Your employer must pay SG contributions at least quarterly (most pay more frequently). These contributions go into your nominated super fund and are taxed at 15% on the way in — significantly lower than most people's marginal income tax rate.
Key 2025-26 rules to know:
- SG applies to employees earning $450 or more per month (the threshold was abolished in 2022, so all employees now qualify)
- Casual and part-time workers receive the same 12% rate as full-time employees
- The SG is calculated on OTE, not total remuneration — it excludes overtime, expense allowances, and some bonuses
For authoritative guidance on employer obligations, the Australian Taxation Office (ATO) super for employers page is the definitive reference.
Salary Sacrifice: The Most Effective Way to Boost Your Super
Salary sacrifice is an arrangement where you ask your employer to redirect part of your pre-tax salary into super instead of paying it to you as take-home pay. Because the diverted amount is taxed at 15% (the super contributions tax rate) rather than your marginal income tax rate, you effectively save the difference.
How Salary Sacrifice Works
Your salary sacrifice contributions, combined with your employer's SG contributions, count toward the concessional contributions cap of $30,000 per year (2024-25 and 2025-26). This cap covers all before-tax contributions.
Real Examples
Example 1: $80,000 salary
Without salary sacrifice, income tax on $80,000 is approximately $17,547 (2025-26 rates). If you salary sacrifice $10,000 into super:
- Taxable income drops to $70,000
- Income tax falls to approximately $14,297 — a saving of roughly $3,250
- The $10,000 in super is taxed at 15% = $1,500 contributions tax
- Net tax saving: approximately $1,750 per year, plus the $10,000 stays invested growing in super
Example 2: $120,000 salary
At $120,000, the marginal tax rate (including Medicare Levy) is 34.5%. Salary sacrificing $15,000:
- Income tax saving: approximately $5,175 (difference between 34.5% and 15%)
- Contributions tax on $15,000: $2,250
- Net tax saving: approximately $2,925 per year
The higher your marginal rate, the more powerful salary sacrifice becomes. Even small amounts — say $50 per fortnight — add up significantly over a 20 to 30 year career through compounding.
Note: Check with your employer that they operate a genuine salary sacrifice arrangement and confirm how it interacts with your Award or Enterprise Agreement. Some employers do not reduce SG on the reduced salary, which is a significant benefit.
Investment Options and Their Impact on Your Balance
The investment option you choose inside your super fund has a larger impact on your final balance than most Australians realise. Most large funds — including AustralianSuper, Australian Retirement Trust, and Hostplus — offer several options ranging from conservative to high-growth.
| Investment Option | Expected Long-Term Return (p.a.) | Risk Level | Best Suited For |
|---|---|---|---|
| Conservative | 4–5% | Low | Within 5 years of retirement |
| Balanced (default) | 6–7% | Medium | 10–20 years to retirement |
| Growth | 7–8.5% | Medium-High | 20+ years to retirement |
| High Growth / Australian Shares | 8–10%+ | High | 25+ years, comfortable with volatility |
Note: Past performance is not a guarantee of future returns. Figures are indicative long-term averages based on APRA performance data.
The compounding impact is dramatic. A 30-year-old with a $50,000 balance and no further contributions (illustrative only) would have:
- Conservative (4.5%): ~$186,000 at 67
- Balanced (6.5%): ~$410,000 at 67
- Growth (8%): ~$680,000 at 67
With ongoing contributions at 12% SG, the differences are even more pronounced. APRA publishes fund-level performance data at apra.gov.au, and Moneysmart.gov.au provides comparison guidance for choosing between funds.
Average Super Balance by Age in Australia (2025-26 Data)
ATO and APRA data shows a consistent pattern: most Australians are behind the ASFA comfort benchmarks, particularly in their 30s and 40s. The gender gap remains significant.
| Age Group | Average Balance (Men) | Average Balance (Women) |
|---|---|---|
| 25–29 | ~$23,000 | ~$18,000 |
| 30–34 | ~$52,800 | ~$40,200 |
| 35–39 | ~$91,000 | ~$68,000 |
| 40–44 | ~$130,800 | ~$91,600 |
| 45–49 | ~$180,000 | ~$130,000 |
| 50–54 | ~$230,000 | ~$165,000 |
| 55–59 | ~$320,000 | ~$230,000 |
| 60–64 | ~$380,000 | ~$275,000 |
Source: ATO Taxation Statistics 2022-23 and APRA Quarterly Superannuation Statistics (December 2025). Figures are approximate averages and will differ from medians.
Two things stand out. First, even by age 60–64, the average balance for women ($275,000) is well below the ASFA comfortable single target ($630,000). Second, men's average at the same age ($380,000) also falls substantially short. This underscores why understanding your projection early — and taking action — is so important.
The gender gap reflects historical patterns including career breaks for caring responsibilities, lower average wages in female-dominated sectors, and part-time work. From 1 July 2025, the federal government's super on parental leave policy (SG on Commonwealth Parental Leave Pay) is designed to begin closing this gap.
Age Pension and Super: How They Interact
Many Australians will receive a full or partial Age Pension alongside their super drawdowns. The current qualifying age is 67 (for those born after 1957). The Age Pension is means-tested against both income and assets.
Key 2025-26 Age Pension thresholds (homeowner):
- Full pension: Asset threshold — single $314,000; couple $470,000
- Part pension cut-off: Single ~$695,500; couple ~$1,045,500
- Full Age Pension rate: Single ~$29,754 p.a.; couple ~$44,962 p.a. (combined)
Super balances in accumulation phase (before preservation age of 60) are not counted in the Age Pension means test. Once you start drawing a super pension from an account-based pension, the balance does count as an asset.
Understanding how your super balance interacts with the Age Pension is a key part of retirement planning — which is where a financial planner adds significant value. Use our financial planning fee calculator to estimate advisory costs.
Non-Concessional Contributions: Topping Up with After-Tax Money
If you've already maximised your concessional (pre-tax) cap or want to deposit a lump sum — say from an inheritance or property sale — you can make non-concessional contributions (NCCs) using after-tax money.
- Non-concessional cap: $120,000 per year (2024-25 and 2025-26)
- Bring-forward rule: If you're under 75, you may be able to contribute up to $360,000 over three years using the three-year bring-forward arrangement
- Total Super Balance (TSB) restriction: If your TSB exceeds $1.9 million (2025-26 threshold), you cannot make NCCs
NCCs are not taxed on entry because you've already paid income tax on the money. They grow in a concessional tax environment (maximum 15% on earnings) and are not taxed when withdrawn in retirement after age 60.
Frequently Asked Questions
How much super do I need to retire comfortably in Australia?
According to ASFA's February 2026 Retirement Standard, a single person needs approximately $630,000 in super at retirement (age 67) to fund a comfortable lifestyle spending $51,278 per year. A couple needs $730,000 combined. These figures assume you own your home outright and receive a partial Age Pension.
What is the SG rate in 2025-26?
The Superannuation Guarantee rate is 12% from 1 July 2025. It applies to your ordinary time earnings and must be paid by your employer into your super fund. This is the highest SG rate in history and is not legislated to increase further under current law.
Can I access my super early?
Super is generally preserved until you reach your preservation age — which is 60 for anyone born after 30 June 1964. You can then access super tax-free once you retire or start a transition-to-retirement income stream. There are limited grounds for early access (severe financial hardship, compassionate grounds, terminal illness), but withdrawing early has a significant long-term cost due to lost compounding.
How does salary sacrifice affect my take-home pay and super?
Salary sacrifice reduces your taxable income, so your take-home pay does not fall by the full sacrificed amount — the government effectively subsidises part of the contribution through tax savings. At an $80,000 salary, sacrificing $10,000 reduces your take-home by approximately $6,500, not $10,000, while your super grows by the full $10,000 (less 15% contributions tax = $8,500 net into your account).
What is the concessional contributions cap?
The concessional (before-tax) contributions cap is $30,000 per year for 2024-25 and 2025-26. This includes your employer's SG contributions plus any salary sacrifice or personal deductible contributions. Exceeding the cap results in the excess being taxed at your marginal rate (with a 15% offset).
What happens to my super if I change jobs?
Your super stays in your fund — it does not belong to your employer. You can keep your existing fund or choose a new one when starting a new job. The ATO's lost super register helps track accounts you may have forgotten. Consolidating multiple super accounts into one generally saves fees and simplifies management.
Conclusion: Project Early, Act Often
The difference between a comfortable retirement and a modest one often comes down not to income, but to when you started paying attention. With the SG now at 12%, concessional contributions capped at $30,000 per year, and compounding working in your favour over decades, the levers are there — you just need to pull them deliberately.
The best first step is understanding your current trajectory. Use Leadkit's free super projection calculator to see where you're headed based on your actual numbers. Then, if the picture isn't what you hoped, consider speaking with a licensed financial adviser — our financial planning fee calculator can help you understand what that advice might cost before you make the call.
For further reading on related financial topics, Moneysmart.gov.au offers free, government-backed guidance on super, and the ATO provides the authoritative rulebook on contribution limits, tax treatment, and access conditions.
Disclaimer: This is general information only and not financial advice. Superannuation rules are complex and your individual circumstances will affect outcomes significantly. Always consult a licensed financial adviser before making superannuation decisions.