According to the ABS, Australian women retire with 37% less super than men. But why? And what can you do to ensure your financial future as a married person? We have some tips. The tips are mostly geared toward women but can be applied by anyone.
*We aren’t financial advisors so none of this constitutes financial advice. Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.
The report by the Australian Bureau of Statistics found that although women earn around 89% of what men earn, on average, they still retire with 37% less in their super. Interestingly, more women are obtaining degrees than men, but still earning less overall. It’s clear that the structures in place impact women negatively in more ways than one.
It’s not just the Pink Tax, wherein manufacturers charge more for the same product when targeted at women. Razors, shaving cream and hair dye are all repeat offenders of this.
It’s more than the gender wage gap – as the figures show that the odds are still disproportionately tipped in men’s favour. This gap in super funds at retirement is largely caused by the amount of time women spend out of the workforce raising children, working part-time to juggle work and family, in addition to the fact that women in Australia are still paid less than men. So how can we change the odds?
How to maximise your super and take care of your financial future:
- Consolidate your super! If you have several accounts, merge them. You can do this directly through the ATO now – you can find lost and unclaimed amounts and consolidate your accounts.
- Find a better (read: cheaper/more effective) super provider. Super Fierce will run the numbers and show you how much you can save. They charge around $2k to do the work for you.
- Top up your super whenever you can!
- If you opt to take time off to raise children, care for a family member (or any other reason), talk to your partner about putting money into your super monthly. If you are caring for children and your partner is working full time, then their money should be shared money.
How to make your money work for you:
- Ask for a raise! PepTalkHer has a great guide on how to ask for a raise, and even have an app to help you!
- Seek professional financial advice on your specific financial situation
- Plan a recurring date to look over your finances, whether it’s weekly, monthly or annually. Look at recurring payments, ongoing payments, and ask some questions about your spending habits, and think about your future financial goals.
- Educate yourself! There are some great books and podcasts about money out there like She’s On The Money that will help you with the basics and specific money topics. SOTM particularly is really informative and accessible and teaches you how to make better choices with your money.
