If your superannuation balance feels behind at 40, there’s still plenty of time to catch up and build real momentum.
Hitting your 40s often brings financial pressure. Between mortgages, kids’ activities, and rising costs, it’s no wonder superannuation balances often look underwhelming at this age.
According to the Australian Retirement Trust, the ideal balance for a 40-year-old aiming for a comfortable retirement is around $168,000. In reality, averages sit closer to $132,000 for men and just over $100,000 for women. It can feel like you’re behind, but the real story is about what happens next.
The power of your next 20 years
At 40, you’ve still got two decades or more before retirement access. That’s enough time for compounding to do the heavy lifting in Super, provided you keep adding fuel to the fire. Think of it like rolling a snowball down a hill: the earlier you push, the larger Super gets by the bottom.
Consistency is the key.
Even a modest extra Super contribution each month, whether through salary sacrifice or redirecting spare income, can make a material difference. A one-off $20,000 invested for 20 years at the market’s long-term average return could grow to more than $115,000! Throw in regular Super top-ups and the outcome scales dramatically. Our guide Understanding Super Contributions explains what you need to know, and how to do it.
Beyond super: building flexibility
Superannuation is a powerful foundation, but it’s also locked away until at least age 60.
That’s why building wealth outside the Super system matters too. At Rask, we think of it through the Core & Satellite lens.
- Core: Keep most of your portfolio in proven, low-cost, easy-to-understand investments. For many Australians, that means broad-based index fund ETFs. They’re low turnover, tax-efficient, and give you exposure to the long-term rewards of capitalism.
- Satellites: This is the smaller, more active part of your portfolio. It’s where you can back specific themes, sectors, or individual shares — ideally areas you understand and have conviction in. For some, satellites become a way to learn, build confidence, and gradually concentrate on quality companies with strong growth potential.
The balance is important. Your Core does the heavy lifting over decades, while Satellites give you flexibility and a chance to pursue opportunities that align with your interests. At Rask, our Rask Invest portfolios are designed this way because we believe it keeps investors disciplined, diversified, and optimistic for the long haul.
Adding extra fuel
For some, progress also comes from outside the nine-to-five.
A side project that brings in even $500 a month, invested consistently, can compound into six figures over two decades. It’s not about hustling endlessly, but about putting additional streams of income to work instead of letting them get lost in everyday spending.
Perspective for long-term investors
It’s easy to glance at the averages and feel behind. The truth is more optimistic. At 40, time and discipline are still on your side. By using super contributions wisely, diversifying outside the system, and letting compounding run its course, you can turn today’s numbers into tomorrow’s financial freedom.
