Women have come a long way in society in regards to 'gender equality', but these are some of the alarming statistics that still exist in regards to income, superannuation and retirement:
There are many issues that have led to the superannuation gender gap.
Statistically, Australian women earn an average of 18%* less than men in full-time employment. If you consider part-time employment, this gap widens to a difference of 35%.
This pay gap means many women cannot accumulate as much wealth, have less choice about their lifestyles and have significantly lower superannuation balances than men.
Many Australian women have had a career break at some stage, to care for children or to care for elderly parents, for example. So many women have not been in the workforce long enough to accumulate a sizeable superannuation balance.
An employer may not have to make Superannuation Guarantee contributions (the compulsory contribution employers make on behalf of an employee) if the employee:
These conditions mean that many women miss out on compulsory superannuation because they often work part time in lower paying jobs.
There are also restrictions on the amount of money you can put into your superannuation account each year (contribution caps). This means that women who return to the workforce after a career break are limited in the amount they can contribute to ‘catch up’ on their superannuation savings.
Retirement may seem like a long way off, but there are some small things that you can do now that will help ‘close the gap’ and give you the financial freedom you deserve in retirement.
Your superannuation is YOUR money. And even though it may be a long way before you can access it, you need to pay it some attention and make sure it is working for you!
There are so many different superannuation options available, and one size definitely does not fit all! You need to make sure your fund has good investment options, a competitive fee structure, binding death nominations available and what kind of insurances they provide.
If you have more than one superannuation fund, you should look into consolidating these. This can reduce your fees, make it easier for you to keep track of and make sure your not paying for fees for things you don't need.
You don’t need a lot of spare cash to start a regular savings plan. Even if it’s only $5 to $10 a week, the important thing is to get into the habit of saving regularly early on. Because the earlier you start saving, the more you will accumulate. Plus you get the benefit of compounding; this means that over time you start to earn interest on your interest.
You can make additional contributions before-tax (concessional contributions) or after-tax (non-concessional contributions). Depending on your level of income, you could save on the amount of tax you pay by making concessional contributions through salary sacrifice or you could give you savings a boost with non-concessional contributions.
We are here to help you stress less and achieve more! That means helping you sort out your superannuation, and making sure it's right for YOU!
Firstly, we find out first what's most important to you - what your values are, then discuss your goals. Once we know what it is you want to achieve and that your values and goals are aligned we will be able to make the most appropriate recommendations for you - including what to do with your super and how to get it working for you.
Make an appointment with our financial stylist, Bronwyn Tyrell to design your financial future!
*Roha Pty Ltd, As Trustee for The Tyrell Family Trust, Trading As: Vivid Accountants & Advisers, ABN 25 146 761 364 is an Authorised Representative of Count Financial Limited.
Bronwyn Tyrell is also an Authorised Representative of Count; Authorised Representative Number: 288117.
‘Count’ and Count Wealth Accountants® are trading names of Count Financial Limited ABN 19 001 974 625 Australian Financial Services Licence Holder Number 227232 a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Count is a Professional Partner of the Financial Planning Association of Australia Limited. Count advisers are authorised representatives of Count. www.count.com.au
General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.
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