How Much Super Do You Need at 40?

If you're 40 years old today and your goal is to retire at 65, one of the biggest questions is: how much do you actually need? In this example, the assumption is that you're single and that you'll maximise your superannuation contributions every year between the ages of 40 and 65. Under those assumptions, you would need around $650,000 in financial assets today, alongside those ongoing super contributions, to support an income of approximately $200,000 per year in retirement. The projection also assumes that your spending gradually decreases by around 2% each year during retirement. As many people get older, their expenses naturally reduce, meaning they may not need to maintain the same level of spending throughout retirement. The investment assumptions are also relatively conservative, with returns of around 7.3% for the first 10 years before reducing to 5.3% over the remaining period. The calculation also takes into account the Age Pension, assuming eligibility begins once financial assets fall below the relevant thresholds. Based on all of these assumptions, the projection suggests you could have enough to fund your retirement through to age 90. Retirement outcomes will always depend on your own financial situation, investment returns, lifestyle, and personal goals. General advice only. Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).

Disclaimer || The information provided in this post is general in nature only and does not constitute personal financial advice. Amy Lehmann is an Authorised Representative(No. 1292710) of AFSL 495401.