Superannuation for women
Boosting women’s super balances requires strategic planning
Working women know only too well the factors that can interrupt their retirement savings plans – time out of the workforce to raise children – having to take a part-time job or rebuilding finances after a major event like a divorce.
The result is that many women end up with median superannuation balances 40% lower* than the average male. However, good strategic financial planning advice early on can help overcome this.
An excellent starting point is to talk with a ClearView Financial Planner about super-saving strategies that suit your individual circumstances. They can talk you through your options and check other details to ensure you’re not missing out on any benefits you might be entitled to.
Here are some super-saving tips:
- Obtain super co-contributions: if you’re eligible, the Government will match your personal super contributions dollar for dollar within a limit depending on your eligibility.
- Avoid the last-minute dash: making extra contributions throughout your working life can have a major effect on your ultimate super balance. The compounding effect of regularly investing even a small amount into super can make a significant difference at retirement.
- Target the higher contributions cap: once you turn 50, the cap on your annual concessional super contributions doubles from $25,000 to $50,000.
- Consider a transition to retirement pension while salary-sacrificing more into superannuation. This could be a highly tax-effective way to boost your super in your final years before retirement.
- Consider rolling multiple super accounts into one fund to reduce fees, and check whether you have any ‘lost’ super accounts. Use the ATO’s SuperSeeker service to see whether you have been listed on its lost members’ register – www.ato.gov.au/superseeker
- Review your asset allocation. You should ensure your super fund’s long-term asset allocation – meaning its weighting between the different asset classes such as shares, property, bonds and cash – is appropriate for your needs and personal tolerance to risk. We all have a different tolerance to risk and choosing the correct asset allocation strategy to invest is very important in meeting your investment needs. Options include Australian shares, international shares, property, cash and fixed interest.
