The Australian Taxation Office recently noted that women retire with significantly less superannuation than men. It is therefore very important for women to take early and proactive action, as it is too late to be worrying about your superannuation when you are approaching retirement.
It is estimated that approximately 90% of women retire with inadequate super and that men retire with around $90,000 more in superannuation than women.
Approximately 250,000 workers also miss out on employer superannuation contributions on their employment earnings because they fail to earn $450 per month. Of the 250,000, a large percentage of them are likely to be women.
Part of the solution could be to find ways to make additional contributions to your superannuation. Either salary sacrifice or personal superannuation contributions could be considered depending on circumstances, along with other options like splitting superannuation with your partner.
A small contribution every month over a very long period of time can make a huge difference to your superannuation balance at retirement. Also, regularly making a personal contribution where it qualifies for the Government Co-contribution can also help.
Another possible part of the solution could be to make a conscious choice in selecting your superannuation fund. If you use your employer’s nominated superannuation fund, make sure it is cost effective and that you understand how it is being invested.
HOT TIP: Don’t make the mistake of not thinking about your retirement because it is still a long way away. Like any important goal, the sooner you start planning and taking action, the greater your ultimate chance of success!