Superannuation is often overlooked within the broader issue of gender difference in Australia. Women generally work and earn less in order to spend more time taking care of the family. This usually leaves them with less savings to last through retirement, compared to men.
On one hand, life expectancy in Australia has improved dramatically for both genders in the last century, but on the other hand, authoritative statistics from the Australian Institute of Health and Welfare indicates that women tend to live about 5% longer than men. This makes it even more critical for women to accumulate enough retirement savings.
Having enough funds inside super doesn’t just affect the lifestyle we are headed in our future years, it also impacts the healthcare and aged care options available to us when we need them the most. For women, this is more significant because they are playing catch-up with men in superannuation savings.
THE 4 COMMON OBSTACLES THAT WOMEN FACE
Not enough time to focus on the money making
The total impact of having children on a woman’s career and everyday life has been widely discussed with the common understanding that it is more common for a woman to take career breaks to care for family. This family focus and short term need makes it easy to forget about issues that are a long way down the track in later years. Now is always the best time to schedule a dedicated hour to start looking into your super arrangements.
Not making enough to save for retirement
Saving may be harder if you are working part-time or have a tight household budget. You can still start saving for retirement today by having your employer automatically deposit an amount of your pretax income into your superannuation fund on a monthly or fortnightly basis. It’s always easier to save money when you don’t have it in your hands for spending.
Not yet concerned about your future affairs
The nature of superannuation and it’s delayed access makes it common to postpone any planning or contributions until later, but research by the Department for Work and Pensions in the United Kingdom in 2006 found that 79% of people agreed that pensions are a useful tool to save for retirement due to access restrictions protecting against spending rather than saving.
Not sure where to start
With so many rules, regulations and reforms, it can be confusing and challenging to get yourself started on sorting out your super. Fortunately, UGC have the expertise to guide you and get you on the right track.
What action can women take?
- Learn the basics about superannuation via online resources
- Check you balance to keep track of your super balance and investment plans
- Consolidate all your super together into one fund to avoid unnecessary administration costs, insurance premiums and fees
- Run the numbers to discover how additional contributions can make a huge difference later down the track
- Speak to a UGC adviser and develop your plan for for success
If you are looking to maximise your saving capacity for future retirement, or you want to speak with someone who can help educate you on what superannuation arrangements and investment strategies might be appropriate for you, contact United Global Capital today for a no cost, no obligation consultation on 03 8657 7640 or email firstname.lastname@example.org to learn more.
The information contained in this article is General in nature and has been prepared without taking into account your objectives, financial situation and needs. When assessing any investment you should also consider that past performance is not a reliable indicator of future performance