Small steps you take today can make a big difference to your financial future
On average, women retire with only $290,000 in super compared to men who retire with $360,000 due to a number of reasons1 — including lower earnings, part-time employment and time out from the workforce. But it doesn’t have to be like that. There are simple things you can do now which can make a big difference to your retirement outcome.
Follow these 5 steps to take control of your financial future:
1. Choose
1. Choose
It’s important to choose the right super fund – one that puts members’ profits before its own is a great place to start. Considering long-term performance, net benefit and fees is important too.
Compare super funds
2. Consolidate
2. Consolidate
Having more than one super account isn’t just complicated, it can cost more too. Paying multiple sets of fees can chip away at your overall super balance. Search for any lost super and consolidate2 to save on fees.
Consolidate your super
3. Contribute more
3. Contribute more
Adding a little extra to super3 could make a big difference to your final super balance through compounding returns. And setting up regular contributions is easy.
Grow your super
4. Check insurance
4. Check insurance
Most super funds offer default insurance for death and disablement when you join. Give yourself some peace of mind and check your account to see if you have enough cover or if you’re paying for insurance you don’t need.
Check insurance
5. Continue
5. Continue
If you’ve taken the time to carefully choose a super fund – and it’s providing strong long-term returns – one of the best things you can do is take your fund with you when you change jobs or retire.
Changing jobs
Download this booklet and keep it handy for when you’re ready to spend some time on your money matters. It breaks down the above steps in more detail and includes a questionnaire to help you find out how you can achieve a better financial outcome today.
Together, we can work on closing the super gap
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Show transcript
Why too many women are at risk of poverty in retirement.
Women, on average, will retire with 47% less super than men, leaving many women vulnerable to poverty in retirement.
And it starts with the gender pay gap.
On average, women earn $261 less than men.
Men and women earn comparatively until they're 28.
Then female earnings flatline while men's increased steadily.
This is compounded by women taking significant more career breaks to care.
Often working part-time or lower paying jobs to prioritise this care.
Earnings almost halve after their first baby.
And the trend continues with additional children.
Caring is a crucial but unpaid role.
Neither paid parental leave or carer's allowance pay superannuation.
Time out of the workforce has a big impact on retirement savings.
The average age people plan to retire is around 65 years old, but the actual average retirement age is closer to 55 years, mostly due to unexpected life events.
On average, women retire sooner than men.
Single women are particularly vulnerable, and one in three marriages end in divorce.
Women live longer than men and need more retirement savings.
So what needs to change?
Genuine equality and pay parity in the workplace.
Improved maternity and paternity leave policies.
Pay the superannuation guarantee to caregivers on paid parental leave and carers allowance.
Retain and develop the Superannuation Co-contribution scheme.
Empower women with information and small actions to help boost their super balance.
Join an ever growing circle of financially empowered women.
Not a member?
It's easy to join AustralianSuper and make the most of your retirement future.
Join Now-
Important information you should know
1 From the Association of Superannuation Funds of Australia (ASFA) website superguru.com.au based on figures as of 30 June 2021.
2 Before consolidating your super, ask your other super provider about any fees or charges that may apply, and other information about the effect this transfer may have on your benefits, such as insurance cover. We recommend seeking financial advice.
3 Before adding to your super, consider your financial circumstances , contribution caps that may apply, and tax issues.