Considering that retirement income is an important benchmark on quality of life, the fact that many women retire with half as much super as men can’t be ignored.
A 2014 Association of Superannuation Funds of Australia (ASFA) report revealed that in 2011/12 women’s superannuation balances lagged behind those of men to the tune of $92,000, at the age of retirement. Over the last 10 years super balances may have increased in general but women still only hold 37 per cent of super savings in Australia. What is perhaps most concerning is that 60 per of women aged between 65 and 69 have no super at all.
Comment from AustralianSuper Group Executive Georgie Williams
“Saving up a healthy super balance for retirement tends to be much harder for women,” says AustralianSuper Group Executive, Georgie Williams. “Around 90 per cent of women are likely to finish their working lives with too little in super savings to fund a comfortable lifestyle in retirement. That’s why it’s so important that they take some simple steps to boost their super savings.”
There are several factors which contribute to women having less in super savings than men; pay inequality, an interrupted work history, lower incomes and those women are more often than not the primary caregivers to children and older parents.
If you’re a woman faced with a shortfall in your retirement funding due to an inadequate super balance, the important thing is to not panic. Taking action sooner rather than later will give you the greatest chance of boosting your super savings.
You may wish to consider the following:
- Combining multiple super accounts into one. Not only will this reduce the fees, it will also make it much easier track your savings.
- See how your current super fund compares to others in terms of fees and returns. If it’s lacking, you could consider switching*.
- Check to see if any of the Government initiatives, such as the Low Income Super Contribution (due to end on 30 June 2017) or the superannuation co-contribution are applicable to you.
- If financially possible, consider making extra salary sacrifice contributions to your superannuation. Even a small amount each month could increase your super considerably.
Find out more about women and Super from AustralianSuper.
*Consider exit fees and insurance benefits before making any financial decisions.
This article has been sponsored by AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788. The views expressed are those of YourLifeChoices and not necessarily those of AustralianSuper. You should consider you own personal circumstances before making a financial decision. For more information, please visit www.australiansuper.com/yournextlife