Super at 25 — Building Your Super in Your Mid-Twenties

Your mid-twenties are when super starts to feel real. You’re likely earning more than in your early working years, may have multiple accounts from different jobs, and the retirement-focused messaging around super is starting to make more sense. Here’s what matters at 25.

Key Takeaways

• The median super balance at age 25–29 is approximately $15,000–$25,000 — but starting now has the most powerful long-term impact
• A $5,000 contribution at 25 — at 7% p.a. over 40 years — grows to approximately $75,000 by age 65
• Your preservation age is 60 — this is the earliest you can access super (with limited exceptions)
• Consolidate any early-career accounts now to eliminate duplicate administration fees
• Check your super fund is on the APRA performance benchmark — being in an underperforming fund early is costly over decades

Average and Target Super Balance at 25

According to APRA data, the median super balance for Australians aged 25–29 is approximately $18,000–$25,000. The mean is higher due to outliers.

A rough on-track estimate for age 25, assuming full-time work since 21 at average wage:

• $15,000–$30,000 — broadly on track depending on income level and whether your employer has consistently paid SG

If your balance is lower, it may be because: you had gaps in employment, worked casually below the SG threshold historically, had accounts sitting idle losing fees, or haven’t consolidated multiple accounts.

The Most Important Super Actions at 25

1. Consolidate — seriously

By 25, many Australians have had 3–5 jobs. Each job may have opened a new super account. Multiple accounts mean:

• Multiple sets of administration fees ($50–$150+/year each)
• Multiple sets of insurance premiums
• Harder to track overall balance

Use myGov → ATO online → Super → Manage → Transfer super to consolidate into one fund. But check insurance before rolling — see Should I Consolidate My Super?

2. Choose a fund intentionally

If you’re still in your employer’s default fund from your first job, this may or may not be the best fund for you. Key things to compare:

• Investment performance (10-year returns after fees)
• Fees (administration fee + investment fee = total cost ratio)
• Insurance (default cover at your age and occupation)

See How to Choose a Super Fund.

3. Check your investment option

At 25 with ~40 years to preservation age, most financial planners would say a growth or high-growth option may align with a long time horizon — though this involves accepting more short-term volatility. Review what your money is actually invested in.

4. Salary sacrifice — even a small amount

Contributing even $50/week extra through salary sacrifice (before-tax) significantly boosts the long-run balance and reduces your income tax. The concessional cap is $30,000/year including employer SG.

The Power of Starting Salary Sacrifice at 25

Illustration only — actual returns vary. Past performance is not a reliable indicator of future returns.

Insurance at 25

Most super funds provide automatic death and TPD cover from around age 25 (some from 21). At 25:

• Default cover is typically modest (e.g., $100,000–$250,000 death/TPD)
• Premiums are low at your age
• Income protection inside super (if held) typically covers 75% of income for a defined benefit period

If you have no dependants and no significant debts, you may not need life cover — but check what you’re paying in premiums. If you have a partner or child who depends on your income, consider whether default cover is adequate.

The First Home Super Saver Scheme at 25

If buying a home is a goal in the next few years, the First Home Super Saver (FHSS) scheme is worth understanding now. The scheme lets you contribute up to $15,000/year in voluntary concessional contributions to super, then withdraw them — plus associated earnings — for a first home deposit.

At 25, earning $55,000–$80,000, you may be in the 19%–32.5% tax bracket:

• A $10,000 salary sacrifice contribution is taxed at 15% inside super instead of your marginal rate
• On withdrawal, you pay your marginal rate minus a 30% tax offset
• The maximum releasable amount is $50,000 total across all contribution years

The FHSS scheme is most tax-effective for people in the 32.5%+ bracket. At 25 with a growing income, it’s worth modelling.

See the FHSS Calculator and FHSS Scheme Guide for eligibility and how to apply.

Investment Options — The Detail at 25

At 25 with approximately 35–40 years to preservation age, understanding your investment option is arguably the most impactful decision you can make:

Illustration only. SG contributions only, no additional voluntary contributions assumed. Past performance is not a reliable indicator of future returns.

A 2% annual return difference more than triples the final balance over 40 years. At 25, the short-term volatility of a growth option is absorbed over a very long time horizon. Review High Growth Super Fund Options and Growth Fund Options.

What to Do This Financial Year (FY2025–26)

Actionable checklist if you’re 25:

1. Check myGov → ATO → Super for all accounts linked to your TFN
2. Consolidate old accounts into one fund (check insurance before rolling over)
3. Review your investment option — are you in growth or high-growth appropriate to your time horizon?
4. Compare your fund’s fees using the APRA YourSuper comparison tool — total cost ratio matters
5. Model salary sacrifice — even $50/fortnight makes a meaningful long-run difference
6. If buying a home, research whether the FHSS scheme suits your situation and start contributions now

Frequently Asked Questions

Is $20,000 in super at 25 good? It’s broadly in line with median balances. The amount matters less than the trajectory — consistent SG payments, no lost accounts, a suitable investment option, and low fees matter most at this stage.

Should I salary sacrifice at 25 when I have other priorities (rent, HECS, etc.)? There’s no universally right answer. HECS repayments are compulsory at certain income thresholds, and housing costs are high. Even a small salary sacrifice amount builds good habits. If your income is growing and you’re in the 32.5% bracket, the tax saving makes salary sacrifice increasingly worthwhile.

What if I’ve never checked my super at 25? Log in to myGov, link the ATO, and check the Super section. It takes 10 minutes and could reveal lost accounts or underperforming funds. Many Australians in their 20s have 2–4 super accounts they’ve forgotten about.

What happens to my super if I go overseas for a year? Your super stays in your fund. If you’re an Australian citizen or permanent resident, your super remains until preservation age regardless of where you live. If you are a temporary resident leaving Australia permanently, you may be able to claim a Departing Australia Superannuation Payment (DASP). See Super for Expats.

Should I be in a high-growth fund at 25? Most financial planners agree that a long time horizon (35+ years) supports a higher growth allocation — though this involves accepting more short-term volatility. This is not personal financial advice. Consider your own risk tolerance and read High Growth Super Fund.

Can I use my super for a house deposit at 25? You cannot access your preserved super balance directly for a house deposit. However, the FHSS scheme allows voluntary contributions made to super to be withdrawn for a first home deposit. See FHSS Scheme.

For more: Consolidate Your Super, Salary Sacrifice Super, FHSS Scheme, How Much Super at My Age?. For advice tailored to your situation, see MoneySmart.