How small extra contributions can make a super difference

Saving for retirement can stay out of focus during the early and middle stages of our careers.

Yet giving your retirement savings even a little extra attention earlier in life can potentially make a big difference later on. How much of a difference largely depends on your approach.

Your super is one of the most effective long term wealth building tools you’ll ever have.

When you eventually reach retirement you can roll all of your accumulated super into an account-based pension, where all your future earnings and income drawdowns will become tax-free.

Starting early, even gently, can give your future self a powerful head start.

In your 20s: Time is on your side

Let’s face it, retirement is a long way away when you’re in your 20s and your career is just starting to get off the ground.

But this decade quietly offers something incredibly valuable: time.

Money contributed into super in your 20s still has decades to grow, and the power of compounding investment returns over time can amplify even the smallest contributions.

Once you start working, your employer will make regular compulsory Superannuation Guarantee (SG) contributions, equal to 12% of your salary, into your chosen super account. You can supplement these with your own personal super contributions.

In total, you and your employer are allowed to contribute up to a maximum of $32,500 each financial year into your super account and you will only pay 15% in tax on those contributions. These are known as concessional (before-tax) contributions.

You can also make non-concessional (after-tax) contributions into your super to boost your overall balance and claim a tax deduction later so you don’t pay any more than 15% tax. These contributions are then counted as concessional contributions under the $32,500 cap for the financial year.

There are other ways to add extra money into your super along the way. Learn more about other types of super contributions and contributions limits.

Making small, steady super contributions in addition to your employer’s ones can meaningfully boost your retirement balance over a long period.

Case study: Paul

Paul is aged 25, has $20,000 in accumulated super, and is currently earning $80,000 per year including super. He receives compulsory SG contributions from his employer (12% of his salary) but has not yet made any extra personal contributions.   Based on his current salary and the 10-year return from legalsuper’s MySuper Balanced option of 7.99%* as at 30 June 2026, Paul would retire with a super balance of around $911,000 at age 67.   Paul has now decided to add $50 per fortnight into his super through a before-tax salary-sacrifice arrangement with his employer. This amount is automatically deducted each payday and will only be taxed at 15% when it reaches his super account instead of at his higher PAYG marginal tax rate.   His estimated retirement balance would increase by over $120,000 to almost $1.03 million at age 67.

In your 30s: Juggling competing priorities

By your 30s, life tends to become more complex. You might be saving for a home deposit, juggling a mortgage, raising children or advancing your career.

With so many competing demands, super can slip down the priority list. But this is also the decade when your income often grows and thoughtful, consistent contributions can have a meaningful impact.

If you haven’t been making extra concessional contributions into your super, it’s never too late to start. The same principle applies: every extra dollar you contribute is not only invested for the long term but may also receive a valuable tax advantage today.

Even contributing an extra $50 to $100 per fortnight can significantly boost your retirement balance over time. And if you step out of the workforce for parental leave or part-time work, spouse contributions or contribution splitting can help keep your super on track. In your 30s, consistency matters more than size.

Case study: Sarah

Sarah is 32 years old, has no children, and earns $140,000 including super per year. She has $100,000 in accumulated super and receives 12% compulsory contributions from her employer. Based on her current salary and the 10-year return from legalsuper’s MySuper Balanced option of 7.99%* as at 30 June 2026, Sarah would retire with a super balance of around $1.42 million at age 67 without making any additional contributions. By choosing to start personal super contributions of $100 per fortnight now, Sarah’s estimated retirement super balance after fees at age 67 would be around $170,000 higher at just over $1.59 million.

In your 40s: The catch up window

Your 40s are often defined by added responsibilities such as mortgage repayments, school fees, family commitments, and career progression.

But this is also a period where many people finally have some capacity to think more strategically about their long term wealth. The encouraging news is that it’s far from too late to make a difference.

If your super balance isn’t quite where you’d like it to be, starting a salary-sacrifice arrangement, alongside making additional personal after-tax contributions where appropriate, can still help to boost your retirement balance.

Also, if you haven’t used your full concessional contributions cap in the past five years, you may be eligible to contribute a larger amount of extra money, subject to your total super balance being less than $500,000 and still be taxed at just 15%. These “carry-forward” contributions[LO3.1][TK3.2] could be made in addition to the current $32,500 annual concessional contributions cap.

Voluntary contributions made in your 40s still have decades to grow, and every dollar invested in super benefits from a low-tax environment. In your 40s, you still have both time and powerful tax advantages on your side.

Case study: Mee

Mee is aged 45, earns $180,000 per year including super, and receives compulsory super contributions from her employer. Although she is on a reasonably good salary now, Mee has only recently returned to work after taking an extended period of time off to raise her family. She has $250,000 in accumulated super and has never made any personal contributions. Based on her current salary and the 10-year return from legalsuper’s MySuper Balanced option of 7.99%* as at 30 June 2026, Mee would retire with a super balance after fees of around $1.21 million at age 67. However, Mee is in a relatively stable financial position and has the capacity to make extra contributions to take full advantage of the maximum $32,500 annual concessional contributions cap. She intends to keep doing this each year. By starting a personal super contributions arrangement, Mee’s estimated retirement super balance after fees at age 67, based on the 10-year return from legalsuper’s MySuper Balanced option of 7.99%*, would increase by more than $310,000 to over $1.52 million.

The big picture: Small contributions can deliver bigger outcomes

Across all ages, the principle remains the same.

Small extra super contributions, made consistently in a low-tax environment and left to compound over many years, can help everyday Australians build stronger retirement balances.

The contributions you make in your 20s, 30s and 40s can help shape your financial comfort and confidence in retirement. Superannuation rewards patience, consistency and forward thinking.

No matter your age or current financial priorities, you can begin strengthening your future today, one small super contribution at a time.

For further information, you can contact a member of the legalsuper national Member Services Team.

Send us a message, book an appointment, or call us on 1800 060 312.

^{* Net of all tax and fees, excluding the weekly administration fee.}

^{Note: Past investment performance is not an indicator of future investment performance. The investment numbers used in this article are for illustrative purposes only and do constitute personal financial advice. Consider consulting a licensed financial adviser to assess your personal financial situation.}