The Association of Super Funds of Australia (ASFA) is using International Women’s Day on Sunday to encourage females to take an hour to sort out their super.
On average, women retire with $92,000 less in their super funds than their male counterparts, which results in 90 per cent of women not having enough in their superannuation funds to fund their retirement. For one in three women the outlook is even bleaker; they retire with no super at all.
The Super Sorter Power Hour aims to encourage woman to take control of their super by taking an hour to review their super and to take steps to redress the balance in their individual super funds. Of course, it’s important that the process is repeated roughly every month to help them stay on top of the situation.
During the hour, ASFA recommends:
- Checking super balances – by getting into the habit of regularly checking the amount that is held in super, and the level of insurance premiums being paid, women are more likely to be able to maximise their savings. Investment options should also be reviewed but this may require the assistance of a qualified financial advisor.
- Combining super accounts – having just one super account will minimise fees paid, as well as being easier to track. While rolling over super accounts is definitely worth it over the long term, it is equally important to ensure you choose the correct super fund to hold your money. For details of the best performing super funds and fees charged, visit SuperRatings.com.au.
- Planning to save more – even just a few extra dollars each week can make a considerable difference over a woman’s working life.
Given that women not only earn less than male counterparts, but can also have a disjointed and patchy work history, there are certain legislative issues that can be made to properly address the issue. ASFA recommends:
- Removing the $450 per month threshold for the Superannuation Guarantee would means that women who work part time or hold a casual position would stop missing out on vital employer contributions.
- Applying the Superannuation Guarantee to income support payments will mean that women don’t miss out when they take a break to raise a family.
- Changing the Anti-Discrimination Act to allow women to receive more employer superannuation contribution to help close the super gap.
Find out more at ASFA.asn.au