Most 40-year-olds think about superannuation the same way they think about the dentist.
They know they should be paying more attention. But they keep putting it off.
For a 40-year-old Australian today, retirement at age 67 is just 27 years away.
The decisions made in the next five years will determine more of the final outcome than those made in the five years before retirement.
Here is the honest picture of what you need and how to get there.
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The superannuation number a 40-year-old needs to retire comfortably
According to ASFA's February 2026 Retirement Standard, a comfortable retirement now costs $51,278 per year for a single person and $77,375 per year for a couple.
To fund that lifestyle from age 67, ASFA estimates homeowners need $630,000 in superannuation for singles and $730,000 for couples.
Those figures are at all-time highs, driven by inflation pushing up the cost of healthcare, energy, food, and services.
A comfortable retirement includes private health insurance, a reliable car, regular dining out, domestic holidays, and an overseas trip every few years.
It is the retirement most Australians believe they deserve. Unfortunately, many will not have enough to fund it.
Where does a typical 40-year-old stand?
According to APRA's most recent superannuation statistics, the average superannuation balance for a person in their early 40s is approximately $130,000 for women and $180,000 for men.
Those figures are well below what is needed.
A 40-year-old with $150,000 in super today, contributing 12% of an $85,000 salary and earning 8% per annum, would accumulate approximately $870,000 by age 67.
Now that is above the ASFA benchmark for a single person. But earning 8% per annum is not guaranteed.
In a balanced fund earning 5% per annum, the same person would accumulate approximately $490,000, falling $140,000 short of a comfortable retirement.
That gap is the difference between private health insurance and the public system.
Between flying interstate once a year and staying home.
Why what you invest in inside superannuation matters
Reaching that 8% target is as important as ever.
The S&P/ASX 200 Index (ASX: XJO) has returned approximately 8.5% per annum including dividends since inception. Inside a 15% superannuation tax environment, this figure is among the most powerful compounding returns available to Australian investors.
For investors wanting broad exposure to Australian shares inside their SMSF, the Betashares Australia 200 ETF (ASX: A200) offers a simple and effective solution.
A200 ETF charges a management fee of just 0.04% per annum, the lowest of any Australian shares ETF on the market. Furthermore, the ETF pays quarterly franked distributions.
On the flipside, for investors who prefer individual stocks, Commonwealth Bank of Australia (ASX: CBA) is the most widely held stock inside Australian superannuation funds for good reason.
CMC Invest forecasts CBA will pay a fully franked dividend of approximately $5.15 per share in FY2026. The franking credit refunds that inside a super fund are taxed at 15% boost the effective after-tax yield above what a term deposit can offer.
The 30 June deadline for a 40-year-old
There's action that Aussies can take now.
The concessional contributions cap for FY2026 sits at $30,000, including employer contributions.
A 40-year-old earning $85,000 with $10,200 in employer contributions already made has room for a further $19,800 in salary sacrifice before 30 June.
Making those contributions at the 15% concessional rate rather than at a marginal rate of 32.5% saves approximately $3,465 in income tax immediately.
Compounded inside superannuation for 27 years at 8% per annum, that single year's additional contribution grows to approximately $29,000.
But be quick! The window closes on 30 June 2026.
Foolish takeaway
A 40-year-old Australian needs approximately $630,000 in superannuation to retire comfortably as a single person.
Most are not on track to reach that number on employer contributions alone.
The gap can be closed with additional contributions, smart investment choices inside superannuation, and the compounding power of time.
But time is the one resource that only gets scarcer.
