THE RETURN OF SUPERWOMAN
Women have very different superannuation needs to men, but many don’t realise this or know how to plan for their super.
There are two key variables that mean women have different financial needs in retirement compared to men: they live longer, but they don’t earn as much. Many women leave the workforce for a period of time to have children, and when they return to work, they often work part-time. This significantly cuts their income earning potential, which in turn cuts the amount they can build up in super.
So here are some of the key considerations women should make when planning for their retirement.
Sort out your insurances
If you have a partner, it’s worth making sure your partner has an adequate life insurance policy, especially if you have kids. If you are working, another good idea is to have income protection insurance which will pay you income in the event you can’t work for a medically verifiable reason. It’ll give real peace of mind if anything happens to you.
Make additional contributions
If you are working, consider making additional super contributions above and beyond the government’s super guarantee.
. salary sacrifice by making contributions with pre-tax dollars… talk to your boss about this.
. see if you quality for the Government’s co-contribution scheme of up to $500 for low income earners.
. assess whether your spouse can make a contribution on your behalf and they’ll receive a $540 tax offset.
. make sure you are the “nominated beneficiary” of your partner’s superannuation so you get the money if they die.
Consolidate and find lost superannuation
If you work part time, or in service industries, you may have had a lot of different jobs with superannuation paid into a range of different funds. Consolidate these contributions into the one fund to cut down on fees and also go to www.ato.gov.au to find any superannuation you may have lost track of.
Take control of your finances
Don’t make the mistake of waiting until retirement or, worse, until your partner dies before getting a handle on your finances. Instead, take charge of your money now to give yourself peace of mind and a sound financial future.