Project your super balance at retirement. Includes SG 12% contributions, salary sacrifice, investment returns, and fund fees. Based on Australian superannuation rules 2025.
| Item | Value |
|---|
| Item | 2025 Detail |
|---|---|
| SG rate | 12% of ordinary time earnings (from 1 July 2025) |
| Concessional cap | $30,000/year (inc. employer contributions) |
| Non-concessional cap | $120,000/year |
| Preservation age | 60 (for those born after June 1964) |
| Retirement age (Age Pension) | 67 |
| ASFA comfortable retirement (couple) | $72,663/year |
| Low income super tax offset (LISTO) | Up to $500/year for incomes ≤$37,000 |
Superannuation works through compulsory employer contributions (12% SG from 1 July 2025), investment returns compounding over decades, and the tax advantages of the super environment (15% earnings tax vs marginal rates of up to 47% outside super). Starting contributions early has an outsized impact due to compound growth over longer periods.
| Starting Age | Starting Balance | Salary | Return | Projected at 67 |
|---|---|---|---|---|
| 25 | $8,000 | $60,000 | 7.5% | ~$980,000 |
| 35 | $60,000 | $90,000 | 7.5% | ~$980,000 |
| 45 | $150,000 | $110,000 | 7.5% | ~$710,000 |
| 55 | $300,000 | $100,000 | 7.5% | ~$590,000 |
These projections assume consistent 12% SG contributions throughout, no career breaks, and an after-fees 7.5% investment return. ASFA's comfortable retirement standard (2025-26) is $51,630/year for singles, requiring a balance of approximately $595,000.
A difference of just 0.5% in annual fees on a $200,000 balance compounds to approximately $100,000+ in lost balance over 25 years. The government's annual Superannuation Performance Test — check your fund at ATO's YourSuper comparison tool — identifies underperforming high-fee funds.
How much super should I have at my age?
ASFA benchmarks suggest: approximately $100,000 at 35, $220,000 at 45, $400,000 at 55, and $700,000+ at 65 for a comfortable single retirement. The ABS median balance is typically 40-60% below these figures at each age — many Australians supplement super with property equity and a partial Age Pension.
What investment option should I choose in my super?
Investment options range from conservative (cash, bonds, low risk/return) to growth (shares, property, higher risk/return). Younger members are typically advised to hold growth options for longer compounding; those near retirement may shift to balanced or conservative to protect accumulated savings. Most funds default members into a balanced or lifecycle option.
What is payday super and when does it start?
From 1 July 2026, employers must pay SG at the same time as wages rather than quarterly. Earlier contributions mean earlier compounding — especially beneficial for lower-income workers and casuals. The ATO will enforce compliance with real-time data matching.