{"id":4367,"date":"2020-12-14T12:03:04","date_gmt":"2020-12-14T01:33:04","guid":{"rendered":"https:\/\/adelaideprivatewealth.com.au\/the-crucial-super-moves-you-need-to-make-today\/"},"modified":"2020-12-14T12:03:04","modified_gmt":"2020-12-14T01:33:04","slug":"the-crucial-super-moves-you-need-to-make-today","status":"publish","type":"post","link":"https:\/\/adelaideprivatewealth.com.au\/the-crucial-super-moves-you-need-to-make-today\/","title":{"rendered":"The crucial super moves you need to make today"},"content":{"rendered":"
Many women reach mid-life with a significant superannuation shortfall. But it\u2019s not too late to turn things around. Actions now may help set up a more secure retirement.<\/p>\n
When was the last time you checked your super balance? The hard fact is that Australian women accumulate, on average, far less super than men over their working lives and retire with smaller balances.<\/p>\n
Men aged 55 to 64 had an average balance of $332,700 in 2017-18, while women of the same age averaged $245,100, according to statistics published by the Association of Superannuation Funds of Australia (ASFA).1<\/sup><\/p>\n Shockingly, one in three women across all age groups have no super at all.2<\/sup><\/p>\n<\/p>\n \u00a0<\/p>\n Beyond having no super at all, there are several reasons why women find themselves well behind men in the balance stakes by the time they reach their forties and fifties. Typically, they\u2019ve taken time out of the workforce to have children, and then chosen to only return part-time while raising them. Women are also more likely than men to become unpaid carers for ageing parents and relatives. During these busy \u2018sandwich generation\u2019 years, personal financial planning can take a back seat to more immediate family needs.<\/p>\n And then there\u2019s the gender pay gap \u2013 the difference between male and female average earnings. It currently sits at 14 per cent in Australia, according to the Workplace Gender Equality Agency.3<\/sup><\/p>\n Because of these factors, many women head towards retirement without enough savings to support even a modest lifestyle \u2013 particularly if, for whatever reason, their spouse or partner\u2019s super is taken out of the equation.<\/p>\n Life doesn\u2019t always go according to plan. Unexpected events like illness, job loss and relationship breakdown may cause significant financial challenges down the track if you don\u2019t take steps now to secure your future. On top of working towards an adequate super balance, this is where having a plan B to provide support \u2013 for example, ensuring you are appropriately insured \u2013 is important. As is being actively involved in the financial planning decisions in any relationship.<\/p>\n For many Australian women, it is a lesson that comes too late. The number of homeless women aged over 55 has spiked in recent years \u2013 up 30 per cent between 2011 and 2016, according to the Australian Human Rights Commission.4<\/sup>\u00a0Risk factors for homelessness in later life, according to the Commission, include experiencing economic disadvantage or family or domestic violence, lack of family support, mental health issues, relationship breakdown and the death of a partner.<\/p>\n Many women in these situations have little or no super or savings and live precariously, struggling to cover bills and basic expenses via Centrelink payments and, once eligible, the Age Pension.<\/p>\n It\u2019s a sobering prospect \u2013 but it doesn\u2019t have to be that way. If you\u2019re in the workforce, either full-time, part-time or casually, you can turn things around. Boosting your super savings in the second half of your working life can make a big difference to your final balance and the lifestyle you\u2019ll be able to enjoy when you stop working.<\/p>\n Reviewing your outgoings and assets \u2013 including how much is in your super account \u2013 will help you understand your position and create a plan to get back on track, says MLC General Manager, Workplace Super, Helen Murdoch.<\/p>\n \u201cFacing into this is so important,\u201d she adds.<\/p>\n “If you\u2019re 50 now, you have another 17 years before you may potentially be eligible for the Age Pension. But it\u2019s not too late to make a big difference during that time. There\u2019s so much you can do.\u201d<\/p>\n Here\u2019s a few things to get started:<\/p>\n Check your investment options. There are a few considerations when deciding if a growth-oriented profile or more conservative profile, is right for you. Take this opportunity to check that your current profile aligns with your long-term goals and you\u2019re still on track.<\/p>\n<\/li>\n Many people have insurance through their super, but is that right for you? If it is, how much cover do you need? Insurance can be very valuable – but make sure your super savings aren\u2019t reduced by the cost of insurance you may not need.\u00a0 A good way to keep your super in shape is to get closer to your super. Get secure access to your accounts .<\/p>\n<\/li>\n<\/ol>\n It\u2019s not uncommon for women in their forties and fifties to enjoy a second wind in their careers, as their children achieve independence and start to make fewer demands on their time and the family budget.<\/p>\n If this is you, you may find it\u2019s an ideal time to start making additional voluntary contributions to your super. You can do this in a number of ways. For example, you can ask your employer to make a regular deduction from your salary, or you could make personal contributions from your take-home pay.<\/p>\n Topping up your balance won\u2019t just build your retirement nest egg, either; it could help you to manage tax.<\/p>\n Contributions you make with pre-tax dollars, such as salary sacrifice contributions, are taxed at a maximum of 15 per cent for most people up to the contribution caps.5<\/sup>\u00a0(High income earners may have to pay an additional 15 per cent tax on these contributions). You may also be able to claim a tax deduction for personal contributions you make to super. Depending on your income level, this can be a smart way to help manage your tax and maximise the amount you\u2019re saving for retirement.<\/p>\n Catching up on your super can seem daunting, but it doesn\u2019t have to be. There\u2019s still time to tackle the issue, and doing so will help provide you with a more comfortable retirement when the time is right for you. And, if you haven\u2019t contributed up to the limit in a previous year, you may be able to make larger contributions now or in the future to give your retirement savings an extra boost.<\/p>\n \u201cIt\u2019s okay to feel worried and intimidated, but you can\u2019t let that stop you from stepping up to secure a better future,\u201d Murdoch says.<\/p>\n \u201cOften, women are so used to looking after everybody else, they neglect themselves. But now it\u2019s time to look after yourself and plan for a great future for you.\u201d<\/p>\n Please contact us on |PHONE| if you seek further assistance on this topic. 1\u00a0The Association of Superannuation Funds of Australia, Superannuation Statistics, August 2020,\u00a0https:\/\/www.superannuation.asn.au\/resources\/superannuation-statistics<\/span>Super-sized setbacks<\/h3>\n
Making ends meet in your later years<\/h3>\n
Simple steps you can take today<\/h3>\n
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<\/a><\/p>\n<\/li>\nLooking ahead to a more secure tomorrow<\/h3>\n
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2\u00a0Better Retirement Outcomes: a snapshot of account balances in Australia, Ross Clare, June 2019,\u00a0https:\/\/www.superannuation.asn.au\/<\/span>
3\u00a0https:\/\/www.wgea.gov.au\/data\/fact-sheets\/australias-gender-pay-gap-statistics<\/span>
4\u00a0https:\/\/www.humanrights.gov.au\/our-work\/age-discrimination\/publications\/older-womens-risk-homelessness-background-paper-2019<\/span>
5\u00a0https:\/\/www.ato.gov.au\/individuals\/super\/growing-your-super\/adding-to-your-super\/salary-sacrificing-super\/<\/span><\/p>\n