Women tend to live longer than men, making it even more essential that they accumulate enough superannuation to last through retirement. But women face unique challenges when it comes to retirement savings. Lower pay, time out of the workforce to raise children, or running a single-parent household, can make it challenging to build a reasonable amount of super.
Why super is good for you
Superannuation is a very tax-effective way to save for retirement. Your super fund pays a low rate of tax on contributions and investment earnings while you grow your nest egg. From age 60, you can withdraw your super tax-free.
Without super, many women must rely on the Age Pension in their senior years. But the Age Pension is designed as a safety net and won’t provide you with a comfortable life.
Taking time off paid work (e.g. to have a baby or care for someone) or working part time can impact your super
Get to know your super
Your employer should be making super contributions on your behalf. These contributions will be equivalent to 9.5% of your salary or wages.
To start sorting out your super, check your super statements or log in to your super account to find out:
- how much super you have
- what investment options you’re in
- what fees you’re paying
- what insurance you have in super
If you are not happy with the fund you are in, find out how to choose the right super fund for you.
If you have several super funds, simplify your life and consolidate your super into one fund. This will save you fees and make it easier to track.
How to grow your super nest egg
There are a number of ways to build your super:
- Ask your boss to pay part of your pre-tax salary into super – Making concessional, or salary sacrificed super contributions can be a tax-effective way to grow your super.
- Make super contributions out of your own pocket – Non-concessional contributions, also known as after-tax super contributions, are not subject to the 15% contributions tax that can apply to other types of contributions. Depending on your annual income, you may also be eligible for government super co-contributions. It’s an easy way to give your super a valuable boost.
- Ask your partner to make contributions on your behalf – Your partner may be able to claim a tax offset on the contributions made to your fund.