Australia’s compulsory Superannuation Guarantee means that your employer needs to contribute 12% of your earnings into super.

Regardless of the ongoing political debates over that guarantee, this should mean most Aussies will have built up enough in superannuation to live comfortably in retirement.

But if your goal is to be more than just comfortable during those golden years, you may not want to hang your hat solely on those super savings.

Now there are a number of ways you can build extra wealth. In my opinion, buying quality ASX shares and holding them over the long-term tops that list.

But how much do you need to invest in ASX shares to reach that $1 million milestone?

I’m glad you asked!

Investing in ASX shares to bolster your superannuation savings

If you take a look at the S&P/ASX 200 Gross Total Return Index (ASX: XJT) – which includes all cash dividends reinvested on the ex-dividend date – you’ll see it’s returned 43.1% over the past five years (as of afternoon trade on Thursday).

This equates to an annualised return of approximately 7.5%.

Now, atop this benchmark yield, how much you need to invest in ASX shares for an extra $1 million in addition to your superannuation will depend on how many years you plan on investing.

The sooner you start, the longer you have to build up your ASX share portfolio. And the sooner you can tap into the magic of compounding.

Here’s what I mean.

If you’re 40 years old and looking to retire at 67, then you’ll have 27 years to buy ASX shares.

If you started today and invested $1,000 each month, here’s what you’d have on top of your superannuation:

• $180,042 in 10 years
• $558,192 in 20 years
• $1,146,198 in 27 years

So, if you have 27 years to achieve your $1 million goal, you should be able to get there by investing just $1,000 a month in ASX shares.

Now, if you’re 50 and want to retire at 67, you’ll need to materially increase those monthly investments to get there in only 17 years.

According to my trusty compound interest calculator, if you invest $2,450 in ASX shares every month, you should have $1,014,029 on top of your superannuation in 17 years.

Which ASX shares should I buy?

Over time, you may want to build up a diversified ASX share portfolio.

But to get the ball rolling in building that superannuation boosting wealth, you could start with the Vanguard Australian Shares Index ETF (ASX: VAS), which is intended to track the ASX 300 index.

Over the past five years, the exchange traded fund has delivered an annualised return of 7.6%.

The ASX ETF’s top four holdings are BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), and National Australia Bank Ltd (ASX: NAB).

The post How much do I need to invest in ASX shares to retire with an extra $1 million on top of my superannuation? appeared first on The Motley Fool Australia.

More reading

• Payday superannuation is two months old. Has it made you better off?
• Which ASX ETFs could be top picks for beginner investors?
• Rates are rising again. Should you pay down your mortgage or top up your superannuation?
• How much must I invest in VAS ETF shares to earn a $1,000 passive income in 2027?
• Are these top Vanguard ETFs still a buy in September?

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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The good news when you’re 35 is that, no matter the size of your superannuation balance, there’s plenty of time to do something about it.

That also means that even small adjustments made now can compound into large benefits by the time you can get access to your superannuation at age 60.

So, how much superannuation does the average Australian have at this age?

Figures compiled by the Association of Superannuation Funds of Australia (ASFA) indicate that men aged 35 to 39 have on average $96,122 in superannuation, while women have $76,020.

Interestingly though, if you put age 35 into ASFA’s Super Detective calculator, which tells you how much you need at that age to be on track for a comfortable retirement, it comes up with a figure of $118,000.

This indicates that most people are likely to come up short when it comes to being able to afford a comfortable retirement.

And ASFA’s figures are calculated based on the assumption a retiree owns their own home and will draw a part pension from the age of 67.

The magic of compound interest

So, what difference can making some extra contributions to your superannuation balance make by the time you retire?

A good way to figure this out is by using the Federal Government’s Moneysmart superannuation calculator.

Using this tool, we can show that by contributing just $20 per week extra to your superannuation from the age of 35, you would end up with $30,558 extra by the time you hit 60.

If you increased the contribution to $100 per week, you would end up with an extra $152,790.

Extra contributions can be tax effective

So, what are the best ways to increase your superannuation contributions?

The easiest way, if you are a salaried worker, is to salary sacrifice part of your pre-tax pay into superannuation.

This salary sacrificed amount is taxed at 15%, rather than your usual tax rate, so this is a tax effective way to contribute.

You can also make a lump sum concessional contribution, which will also be taxed at 15% once it is in your superannuation.

A notice of intent to claim must be lodged with your super fund for concessional contributions so they know to deduct the 15% tax from the amount.

It’s important to keep in mind that the concessional contributions cap is $32,500, with this amount including your employer’s contributions, salary sacrifice, and concessional contributions.

If funds permit and your superannuation balance was less than $500,000 in the last financial year, you can also carry forward any unused concessional contribution cap amounts from the previous five financial years, with this amount able to be found in your myGov account.

It is also possible to make non-concessional contributions up to $130,000 and to contribute more than this amount using the bring-forward rule.  

The post The average superannuation balance for 35-year-olds in Australia in FY26. How does yours compare? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• ASX healthcare shares are 39% higher since June. Are you missing out?
• West African Resources’ new dividend yield might surprise
• 3 reasons why the Wesfarmers share price is a buy
• 2 ASX dividend shares offering 6% to 7% yields buy-rated by Morgans

Motley Fool contributor Cameron England 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.

The S&P/ASX 200 Index (ASX: XJO) endured a horror Thursday, with the Australian markets selling off heavily. We have seen pessimism on the ASX for most of this week, and that accelerated today, with the ASX 200 falling sharply at the open and reaching a 1.5% loss at one point.

Thankfully, sentiment improved slightly in the afternoon. But even so, the index ended up closing with a 1.03% loss at 8,819.4 points.

This depressing Thursday for the ASX followed a similarly bearish night over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was again in a foul mood, dropping another 0.77%

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) wasn’t much better, losing 0.64%.

But let’s grit our teeth and return to the local markets now for a post-mortem of how the different ASX sectors went this session.

Winners and losers

It was a sea of red on the ASX boards today, with not one corner of the market escaping unscathed.

The least-worst place to be was in communications shares. The S&P/ASX 200 Communication Services Index (ASX: XTJ) got out relatively intact, only slipping 0.13% lower.

We can say something similar for utilities stocks, with the S&P/ASX 200 Utilities Index (ASX: XUJ) sliding 0.33%.

Gold shares held up relatively well too. The All Ordinaries Gold Index (ASX: XGD) took a 0.48% dip.

Real estate investment trusts (REITs) fared a little worse though, illustrated by the S&P/ASX 200 A-REIT Index (ASX: XPJ)’s 0.6% retreat.

Consumer discretionary stocks were in a similar boat. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) drifted down 0.63% today.

Energy shares came next, with the S&P/ASX 200 Energy Index (ASX: XEJ) receding 0.67%.

Healthcare stocks weren’t exempt. The S&P/ASX 200 Healthcare Index (ASX: XHJ) shrank 0.71%.

Consumer staples shares were no safe haven either, as you can see from the S&P/ASX 200 Consumer Staples Index (ASX: XSJ)’s 0.75% reduction.

Financial stocks were hit hard. The S&P/ASX 200 Financials Index (ASX: XFJ) took a 0.9% dive this Thursday.

Industrial shares had a shocker, with the S&P/ASX 200 Industrials Index (ASX: XNJ) cratering by 1.04%.

Mining stocks were smashed too. The S&P/ASX 200 Materials Index (ASX: XMJ) tanked 1.62% today.

Finally, tech shares were the worst place to be, evidenced by the S&P/ASX 200 Information Technology Index (ASX: XIJ)’s 1.74% plunge.

Top 10 ASX 200 shares countdown

Gold stock Ora Banda Mining Ltd (ASX: OBM) came out on top of a fairly anaemic pile of winners this session. Ora Banda shares climbed 4.93% today, finishing the session at $1.60 each. That was despite no news or announcements from the company this Thursday.

Here’s how the other winners tied up at the dock:

ASX-listed company	Share price	Price change
Ora Banda Mining Ltd (ASX: OBM)	$1.60	4.93%
Megaport Ltd (ASX: MP1)	$18.41	4.25%
Eagers Automotive Ltd (ASX: APE)	$20.32	3.09%
West African Resources Ltd (ASX: WAF)	$3.89	2.91%
Tabcorp Holdings Ltd (ASX: TAH)	$0.945	2.72%
Sims Ltd (ASX: SGM)	$25.34	2.30%
Karoon Energy Ltd (ASX: KAR)	$1.83	2.23%
Challenger Ltd (ASX: CGF)	$9.94	1.95%
Cochlear Ltd (ASX: COH)	$137.58	1.68%
Resolute Mining Ltd (ASX: RSG)	$1.42	1.43%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• West African Resources’ new dividend yield might surprise
• Is the ASX heading for a stock market crash?
• Megaport shares have surged 10% in a week to $18. I think they could hit $25
• ASX 200 dives to a 6-week low. What’s behind today’s sell-off?
• You don’t need to own Nvidia to invest in AI – Here are the best Aussie artificial intelligence shares

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 positions in and has recommended Cochlear and Megaport. The Motley Fool Australia has recommended Challenger, Cochlear, and Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.