Category: Stock Market

Recent years have been volatile for ASX healthcare shares.

The past eight months have seen the S&P/ASX 200 Health Care Index (ASX: XHJ) swing 23% from peak to trough, then another 27% back the other way.

It seems the market can’t decide whether the health sector is valuable as a defensive investment or the rapid rise in interest rates is harming future earnings.

But amid this to-ing and fro-ing, there have been some gems strong enough to keep swimming in one direction.

One of these is Clarity Pharmaceuticals Ltd (ASX: CU6).

‘The most exciting company I’ve come across in Australia’

Clarity, which is developing treatments for prostate cancer, saw its shares languish at 41 cents in May 2022.

Let’s imagine you bought $20,000 at that time.

Since then, the business has hit home run after home run, sending the market into a frenzy.

In fact, Frazis Capital portfolio manager Michael Frazis was full of praise for the biotech last month.

“This is the most exciting company I’ve come across in Australia lately,” he said in an update to clients.

“Clarity has been steadily releasing data from patients treated with their copper therapies with late-stage prostate cancer.”

On Thursday morning, the Clarity share price hit a new 52-week high of $2.87.

That $20,000 you invested only 21 months ago would now be worth a stunning $140,000.

That’s a seven-bagger in less than two years, thank you very much.

The bulls are still bullish on this healthcare stock

As well as Clarity’s own wins with favourable test results and regulatory approvals, there is a potential structural tailwind for prostate cancer therapies.

Currently, new treatments, such as the one Clarity is working on, are given only to “heavily pretreated patients” who have already had more traditional therapies applied to them.

But this could change, according to Frazis.

“The trend is towards increased monitoring and — where possible — fewer surgeries and hormone therapy, which involves the unwelcome side effects of incontinence, impotence, low testosterone and depression.

“The hope is that these targeted treatments, with their milder side effects, will move further up the treatment timeline, which could double or even triple industry revenues.”

Admittedly this cultural change will take time, but Frazis reckons the shift is “looking more likely than ever today”.

This is why, despite a 237% rocket in the share price over the past 12 months, many professionals are still bullish on Clarity.

Broking platform CMC Invest currently shows all three of Bell Potter, Jefferies, and Wilsons rating the healthcare stock as a buy.

The post This ASX healthcare stock turned $20k into $140,000 in less than 2 years appeared first on The Motley Fool Australia.

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More reading

• 3 pharma shares outshining the ASX index today

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Next week will be a big one for CSL Ltd (ASX: CSL) shares and shareholders.

That’s because the biotechnology company is scheduled to release its half year results on Tuesday.

Ahead of the release, let’s now take a look to see what the market is expecting from the company.

Half-year results preview

There are likely to be two key things to look out for when CSL releases its results next.

The first is its profit growth and whether it is on course to achieve its guidance in FY 2024. Morgans is expecting a solid first half performance. It said:

FY24 guidance suggests solid 1H. FY24 constant currency guidance calls for NPATA US$2.9-3bn (13-17%) on 9-11% revenue growth, with operating efficiency improving, B/S leverage declining (2x ND/EBITDA) and ROIC “steadily improving” over time.

Elsehwere, the team at Citi is forecasting 17.6% earnings per share growth in FY 2024. So, its analysts will no doubt be looking for similar growth during the first half.

What else?

Another metric to keep an eye on is the gross margin of the key CSL Behring business. This arguably has the biggest impact on the company’s profitability. So, if this margin shows signs of improvement, it could go down well with the market.

According to a note out of UBS, the consensus estimate for CSL Behring’s gross margin is 50.3%. This is slightly ahead of the broker’s estimate of 49.8%.

Should you buy CSL shares?

Citi, Morgans, and UBS are all bullish on CSL and currently have the equivalent of buy ratings on its shares.

The notes reveal that Citi has a buy rating and $325 price target, Morgans has an add rating and $328.20 price target, and UBS has a buy rating and price target of $350.

The post Own CSL shares? What to expect from its half-year results appeared first on The Motley Fool Australia.

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More reading

• Here’s how the ASX 200 market sectors stacked up this week
• Morgans says these ASX 50 shares are strong buys
• Up 28% since October, why are CSL shares attracting regulator scrutiny?
• 3 ASX blue-chip stocks I think every Aussie should own
• Brokers name 3 ASX shares to buy now

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re wanting to supercharge your portfolio returns, then it could be worth checking out the ASX growth shares listed below.

That’s because analysts at Goldman Sachs have recently put buy ratings on them with price targets offering major upside.

Here’s what they are saying about these ASX growth shares:

IDP Education Ltd (ASX: IEL)

Goldman Sachs believes that this language testing and student placement company’s shares are significantly undervalued following a recent selloff.

Its analysts have a buy rating and $27.60 price target on its shares. This implies potential upside of 43% for investors over the next 12 months.

While Goldman acknowledges that there has been a series of negative events that could impact IDP Education, it remains very positive and believes that structural tailwinds will underpin very strong medium term growth. It said:

IEL trades at 28x our 12mf EPS estimate vs 45x historically and against a +17% FY23-26E EPS CAGR. Reiterate Buy into a strong 1H result where we sit +10% ahead of VA Consensus EBIT based on a strong start to FY24E as seen in the available visa data. News flow may continue to be choppy, however IEL’s fundamental quality and structural growth drivers remain intact while the company possesses levers to continue to grow earnings (e.g. costs).

Readytech Holdings Ltd (ASX: RDY)

Goldman Sachs also sees major upside potential for this enterprise software provider’s shares.

It currently has a buy rating and a $4.50 price target on the ASX growth share. This implies a 12-month potential return of over 30% for investors.

Goldman likes Readytech due to its positive growth outlook and attractive valuation. It said:

We believe RDY remains undervalued compared to SaaS peers on an absolute and growth adjusted basis, trading on 11.5x FY24E EV/EBITDA vs a 19% FY23-26E EBITDA CAGR or a growth-adjusted multiple of 0.6x vs peers typically at ~1.5x.

The post These top ASX growth shares can rise 30% to 40% appeared first on The Motley Fool Australia.

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More reading

• 6 oversold ASX shares to buy in February 2024
• 50% down: 2 ‘world leader’ ASX 200 shares ready to bounce back
• Buy these ASX growth shares for 20% to 40% returns
• These are the 10 most shorted ASX shares
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Idp Education, and ReadyTech. The Motley Fool Australia has recommended Idp Education and ReadyTech. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If I were aiming to build a bulletproof passive income stream by investing $10,000 in S&P/ASX 200 Index (ASX: XJO) dividend stocks, here’s how I’d go about it.

First, while it’s not a hard rule, I’d tend to stick to the bigger dividend-paying companies.

Sticking to ASX 200 stocks should give my portfolio less volatility than investing in small-cap shares. That in turn should help smooth out the annual passive income I can expect to land in my bank account.

Second, I’d strongly lean towards companies paying fully franked dividends. This should see me hold onto more of that dividend income at tax time.

Third, I’d invest my $10,000 across a range of companies operating across a variety of sectors. That will decrease the odds of my passive income portfolio taking a big hit if any particular sector comes under pressure.

Now, I’d also keep in mind that the yields I generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company-specific and macroeconomic factors.

However, by spreading my $10,000 across the retail, finance, energy and resources sectors, my long-term aim is to see any dip in dividends from one stock balance out by increased payouts from another.

With that said…

Four ASX 200 shares for diversified passive income

The first ASX 200 dividend stock I’d invest in for reliable passive income is home furnishings and white goods retailer Harvey Norman Holdings Ltd (ASX: HVN).

Over the past 12 months, the retail stock has delivered 25 cents a share in fully franked dividends. At Friday’s closing price of $4.65, Harvey Norman shares trade on a trailing yield of 5.38%.

The second company I’d target for passive income is financial stock Australia and New Zealand Banking Group Ltd (ASX: ANZ).

Over the past 12 months, ANZ has paid out $1.75 a share in partly franked dividends. At Friday’s closing price of $27.68, ANZ shares trade on a trailing yield of 6.32%.

Turning to the resources sector for passive income, I’d target mining giant Fortescue Ltd (ASX: FMG).

Over the past 12 months, Fortescue has paid out $1.75 a share in fully franked dividends. At Friday’s closing price of $28.26, the ASX 200 resources stock trades on a trailing yield of 6.19%.

Which brings us to the fourth company I’d invest in for a bulletproof passive income portfolio, ASX 200 oil and gas stock Woodside Energy Group Ltd (ASX: WDS).

Over the past 12 months, Woodside has paid out $3.40 in fully franked dividends. At Friday’s closing price $31.86, Woodside shares trade on a trailing yield of 10.6%.

To the maths!

To aim for that bulletproof passive income stream, I’d invest an equal amount into each of the above four companies. Or $2,500 apiece.

Based on the trailing yields, I can then expect to earn an average yield from these four ASX 200 dividend stocks of 7.1%.

This means my $10,000 investment should see me earning $710 a year in passive income, with potential tax benefits from those franking credits.

And, of course, I’ll be hoping for some share price gains as well!

The post How to build a bulletproof ASX 200 passive income portfolio with just $10,000 appeared first on The Motley Fool Australia.

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More reading

• What this Warren Buffett-linked CEO’s prediction could mean for Woodside shares
• Shares vs. property: Beginner investors choosing Aussie shares, ASX ETFs and rentvesting
• ASX dividend shares: What’s better, growth or consistency?
• Shares vs. property: 3 furniture retailers hit 52-week highs amid continually rising home values
• Which Big Four ASX bank share will pay the biggest dividend this year?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It was another busy week for Australia’s top brokers. This led to the release of a large number of broker notes.

Three ASX broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Lovisa Holdings Ltd (ASX: LOV)

According to a note out of Bell Potter, its analysts have retained their buy rating on this fashion jewellery retailer’s shares with an improved price target of $26.50. The broker has been looking into the company’s opportunity in China following the launch of its first store at the end of 2023. Bell Potter highlights that the latest customer reviews for Lovisa from Mainland China on the dominant social media app, Xiaohongshu, have been positive. This bodes well for the company given that the market is 25 times larger than Australia. The Lovisa share price ended the week at $24.37.

Santos Ltd (ASX: STO)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $9.95 price target on this energy producer’s shares. This follows news that its merger talks with Woodside Energy Group (ASX: WDS) have ended without a deal being reached. Macquarie isn’t fazed by the news, believing there’s still significant value in its assets that is being overlooked. In addition, it suspects that Santos may soon reinstate its buyback program. The Santos share price was fetching $7.32 on Friday.

WiseTech Global Ltd (ASX: WTC)

Analysts at Morgan Stanley have retained their overweight rating and $85.00 price target on this logistics solutions company’s shares. Morgan Stanley highlights that the market is expecting a strong half year result from WiseTech this month. It suspects that if the company beats the market’s estimate of 30% revenue growth, its shares could jump. Though, it warns that softer than expected revenue growth could mean the opposite for its shares. The WiseTech share price ended the week at $77.15.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Could Lovisa shares help you become a millionaire?
• ASX dividend shares: What’s better, growth or consistency?
• Here are the top 10 ASX 200 shares today
• Why the Santos share price could surge in 2024 without Woodside
• Why Alliance Aviation, Platinum, REA, and Santos shares are dropping today

Motley Fool contributor James Mickleboro has positions in Lovisa and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Macquarie Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Macquarie Group and WiseTech Global. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Woodside Energy Group Ltd (ASX: WDS) shares may be in line to benefit in the medium term if a compelling oil-price prediction comes to fruition.

US company Occidental Petroleum CEO Vicki Hollub told CNBC that the oil market will face a supply shortage by the end of 2025 because the world is not replacing crude oil reserves fast enough.

What does this mean for Woodside?

This could spell good news for Woodside shares. If there is less supply than demand for oil, it could push up the oil price, which may then boost Woodside’s profitability. It costs roughly the same to extract oil each month, so a boost to revenue would probably translate directly into higher net profit as well.

But, keep in mind that Woodside earns a large amount of its profit from LNG (liquified natural gas), which is a different commodity. A 10% rise in Woodside’s oil earnings won’t necessarily translate into a 10% in overall profit. In the HY23 result, crude oil and condensate made up US$1.76 billion, or 24%, of Woodside’s overall revenue from hydrocarbons.

Oil supply forecast

According to reporting by CNBC, Hollub said 97% of the oil being produced right now was discovered in the 1900s. The world has reportedly replaced less than 50% of the crude oil produced in the last decade. The CEO said:

We’re in a situation now where in a couple of years’ time we’re going to be very short on supply.

At the moment, the market is “oversupplied”, which has kept a lid on prices despite the conflict in the Middle East. Places like the United States, Brazil, Canada and Guyana have pumped record amounts of oil as demand slows amid a faltering economy in China.

Hollub thinks the supply and demand balance and outlook will “flip” by the end of 2025. She said:

The market is out of balance right now, but again, this is a short-term demand issue. But it’s going to be a long-term supply issue.

The oil-producing companies of OPEC are forecasting that global oil demand will grow by 1.8 million barrels per day in 2025 thanks to a recovery of the Chinese economy. The growth of demand is expected to beat the growth of supply of 1.3 million barrels per day by countries outside of OPEC.

Woodside share price snapshot

Over the past six months, shares in the company have fallen 16%, so it’s cheaper to invest in than it was before. Added to the prediction from the Occidental CEO, this seems to be an interesting time to be looking at Woodside shares.

And possibly lending weight to the prediction is Occidental’s links with investing legend Warren Buffett. Buffett’s company Berkshire Hathaway owns at least 28% of Occidental, so he likely holds its leadership in high regard. 

The post What this Warren Buffett-linked CEO’s prediction could mean for Woodside shares appeared first on The Motley Fool Australia.

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More reading

• ASX dividend shares: What’s better, growth or consistency?
• Why the Santos share price could surge in 2024 without Woodside
• 5 things to watch on the ASX 200 on Thursday
• Why this US forecast just lifted my 2024 outlook for the Woodside share price
• How Charlie Munger used $1,500 to make a $107k-a-year passive income

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Occidental Petroleum. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The good thing about ASX exchange-traded funds (ETFs) is that they offer investors ways to invest in all types of shares.

This includes dividend shares, which means that income investors can use them to build out an income portfolio effortlessly.

But which ASX ETFs would be good options for income investors? And how much would a $20,000 generate in dividends? Let’s look at two popular options:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The BetaShares S&P 500 Yield Maximiser could be an ASX ETF to buy for income.

As its name suggests, this ETF maximises the yields from the top 500 companies listed on Wall Street. This includes giants such as Apple, Exxon Mobil, Johnson & Johnson, and Walmart.

And when I say maximise, I mean it. The S&P 500 index currently trades with a dividend yield of approximately 1.5%. However, this ETF’s actively managed covered call strategy means it aims to pay out significantly more.

For example, at the last count, its units were providing investors with a 5.1% dividend yield. This means that a $20,000 investment would provide $1,020 of income.

Vanguard Australian Shares Index ETF (ASX: VHY)

Another ASX ETF for income investors to look at is the Vanguard Australian Shares High Yield ETF.

This popular funds gives investors low-cost exposure to a diverse group of ~70 ASX shares that have higher forecast dividends relative to the market average.

Among its holdings are big miners and banks, such as BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), as well as smaller names like Metcash Limited (ASX: MTS) and Eagers Automotive Ltd (ASX: APE).

At present, the ETF currently trades with a trailing dividend yield of 5.1%. This would also generate $1,020 of income from a $20,000 investment.

The post Here’s how much income you’d get from $20,000 invested in these ASX ETFs appeared first on The Motley Fool Australia.

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More reading

• These ASX income ETFs could be top buys
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Walmart. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson. The Motley Fool Australia has positions in and/or has recommended BetaShares S&P 500 Yield Maximiser Fund, Metcash, and Eagers Automotive. The Motley Fool Australia has recommended Apple and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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While the interest rates on term deposits have improved, they still fall short of the dividend yields available on the Australian share market.

In addition, with interest rates tipped to fall over the next 12 months, we might have already seen the peak for term deposits.

As a result, income investors may get better outcomes with the buy-rated ASX dividend shares named below. Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

The team at Bell Potter is feeling positive about Accent Group. It is the footwear retailer behind brands such as The Athlete’s Foot, HYPEDC, and Sneaker Lab. Bell Potter currently has a buy rating and $2.50 price target on its shares.

As for those all-important dividends, Bell Potter is forecasting fully franked dividends per share of 12 cents in FY 2024 and then 14.1 cents in FY 2025. Based on the Accent share price of $2.12, this represents dividend yields of 5.7% and 6.65%, respectively.

Orora Ltd (ASX: ORA)

Goldman Sachs thinks investors should be buying this packaging company. It likes Orora due to its defensive qualities and positive growth outlook. The broker has a buy rating and $3.50 price target on its shares.

In respect to income, the broker has pencilled in dividends per share of 14 cents in FY 2024, 15 cents in FY 2025, and 16 cents in FY 2026. Based on the current Orora share price of $2.84, this will mean yields of 4.9%, 5.2%, and 5.6%, respectively.

Rural Funds Group (ASX: RFF)

This agricultural property company could be an ASX dividend share to buy according to analysts at Bell Potter. The broker currently has a buy rating and $2.40 price target on its shares.

As for dividends, Bell Potter is forecasting dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.22, this will mean yields of 5.3% for investors.

The post Forget term deposits and buy these ASX dividend shares appeared first on The Motley Fool Australia.

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More reading

• 6 oversold ASX shares to buy in February 2024
• Buy ANZ and these ASX dividend stocks now
• Here are the top 10 ASX 200 shares today
• 3 ASX dividend shares for income investors to buy now
• How can I make $1,000 a month from ASX shares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Accent Group and Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Regular readers would know that there are many ways to reach the magic million using the power of ASX shares and compounding.

However, what you’re really wanting to know is which stocks will take you there.

One stock that many experts are bullish on is low-cost jewellery retailer Lovisa Holdings Ltd (ASX: LOV).

Let’s examine whether Lovisa shares have the chops to take you to seven figures:

What does Lovisa do?

Lovisa operates a network of “fast fashion” jewellery shops both in Australia and overseas.

Although the business started in Sydney, its stores can now be seen in places as far-flung as Hong Kong, Namibia, France, the US, the UAE, and Colombia.

The retail chain has a presence in 40 countries via 830+ stores, according to the last quarterly update.

How is the business going?

Although it’s definitely a consumer discretionary stock, Lovisa has withstood the recent economic downturn better than some others because of its low-cost niche.

Its target demographic also skews to younger generations, who are less likely to be under pressure from higher mortgage repayments.

The company is also on an expansion tear, with its first store openings in China and Vietnam imminent. They are both countries that have a fast-growing middle class market.

Total sales in the September quarter grew 17% year-over-year, while the 2023 financial year numbers saw revenue rise 30%, earnings before interest and tax (EBIT) increase 27.9%, and net profit after tax (NPAT) head up 16.7%.

Are Lovisa shares a millionaire maker?

Lovisa is an unusual investment in that it can be considered both a growth stock and a dividend producer.

The share price has gained an amazing 239% over the past five years. Meanwhile the stock has paid out a 2.9% dividend yield, which is 70% franked.

Of course, if you had the foresight to buy Lovisa shares a half-decade ago, that yield would now incredibly exceed 9.5%.

And the professional community is largely optimistic about the business’ outlook.

Nine out of 14 analysts currently surveyed on CMC Invest reckon the stock is a buy.

So, yes, Lovisa shares have a decent chance of making you a millionaire.

Buyer beware though

But there are two caveats.

The first is that if you buy this stock, it should be part of a well-diversified portfolio. 

There are no certainties in life. So you’ll want to make sure if Lovisa doesn’t perform as expected, other stocks could step up.

The second is that the past is no guarantee of future performance.

The last five years have been pretty impressive for Lovisa shares, but that says nothing about how they will go in the next five.

The post Could Lovisa shares help you become a millionaire? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s well known that Australians between the ages of 30 and 50 don’t exactly pay as much attention to their superannuation balances as those who are closer to the traditional retirement age.

On one hand, that’s fair enough. If you’re 30 years old, retirement probably seems like a distant pipedream. Certainly not something that’s worthy of as much thought as career advancement.

But I would argue that we should all be paying our super funds some attention every once in a while, regardless of our age. Superannuation is our best shot at a comfortable, self-funded retirement, after all. And thanks to the power of compounding, the earlier we show it some love, the better off we’ll be.

A few weeks ago, we took stock of what the average and median superannuation balances were for Australians aged 60, 65 and 70.

But today, we’re going to check out how those numbers look for Australians aged 30, 40 and 50. It might be worth seeing how your own super fund measures up to what the average person in your age group has.

What’s the average superannuation balance at 30, 40 and 50?

So again, we’ll be using the numbers from the Australian Taxation Office (ATO)’s Taxation Statistics report. This report pulled data from the 2021 financial year.

According to the ATO’s data, the median super balance for Australians aged between 30 and 34 in FY21 was $38,681. That compares to an average balance of $51,400. Remember, the average statistic is more heavily influenced by outsized numbers than the median.

For someone between the ages of 40 and 44, the median balance was $91,590. That was with an average superannuation balance of $123,993.

For Australians aged between 50 and 54, we get a median figure of $137,930 and an average balance of $215,115.

These figures might not mean too much to someone who’s 30 or perhaps even 40 right now. But it’s well worth checking out how your own superannuation fund compares to these average and median figures.

As we covered last year, AMP has estimated the amount that a single retiree (who already owns their own home outright) will need in their superannuation nest egg to fund a comfortable retirement. Those analysts came up with a figure of $1.25 million in today’s dollars. It was a lump sum of $795,000 to pay for even a modest retirement.

If you plug in the numbers for your own fund, you might find that your super balance could need a boost. That’s if you’re hoping to get to that rainbow’s end at the conclusion of your working life.

The post What’s the average Aussie superannuation balance at age 30, 40 and 50? appeared first on The Motley Fool Australia.

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• Shares vs. property: Beginner investors choosing Aussie shares, ASX ETFs and rentvesting
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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