Mastering your money game can totally transform your life
Ah, superannuation… the key to living your best life in retirement.
But for many women in Australia, their superannuation balances aren’t quite as full or healthy as men’s super funds. This means so many women are at a huge disadvantage when it comes time to retire.
If you have your husband or partner’s super balance to rely on, this may not be as much of a problem. But, as we always say here at Got Money Honey, financial independence is the most important thing for all women – married, in a relationship, or single.
And to truly secure financial independence – especially as you approach retirement – growing your super fund is one of the most important steps you can take.
Many women in Australia are at risk of running out of money in retirement – primarily because of the gender pay gap and the need to take time off to care for children.
As a result, they have a harder time building their superannuation than men.
In fact, according to AustralianSuper (one of the largest super funds in our country), women retire with almost 42% fewer retirement savings than their male counterparts.
Because of this, they will likely have to work longer just to achieve a comfortable lifestyle during retirement.
This is a serious concern that needs to be recognised.
But luckily for women, there are plenty of ways to grow your super balance on top of just earning the compulsory Super Guarantee from your employer.
Want to feel more confident about your financial future? Now’s the time to get on top of your money and have greater control over your super. After all, it’s your money!
Here are some tips for boosting your super savings:
Check your super at least once a year to ensure your money is growing steadily. It’s important to make sure you are actually receiving your super from your employer, that you aren’t paying unnecessary fees, and your super is going up and not backwards.
Additionally, explore your retirement options, identify your desired retirement, and calculate how much you need to live that type of lifestyle.
Having several super fund accounts is common for those who have had several jobs before they retire.
But every super fund tied to your name means you are paying administration fees. So, if you own two super funds, you are paying twice the amount of admin fees and essentially, you’re wasting money.
If you think you might have more than one super fund, check all of your accounts with the ATO and see if there are some you have lost track of.
After finding all of your super accounts, check for any fees that may apply for closing lost accounts. Make sure you also understand the impact of combining accounts on additional benefits.
Next, consolidate them into a single place. Doing this lets you keep track of your super and makes it easier to manage your account. It also prevents you from having duplicate insurance policies and paying those pesky unnecessary fees.
Women who got married and changed their surnames can encounter problems with their super accounts. The same is true for women who go through a divorce and change their last name back.
If you have multiple accounts, prevent running into any future issues by updating your name ASAP.
Take advantage of the benefits offered by the Australian Government. For instance, check if you are eligible for a co-contribution if you are a low-income earner.
You may be able to get regular co-contributions. Alternatively, if you are on leave (including maternity leave) or reduced hours, you may also be eligible for a super co-contribution top up!
This could mean the government will match 50 cents for every dollar added to your super – which really adds up over time!
When it comes to saving for retirement, unfortunately, women usually have a more challenging time than men.
Fortunately, there are simple steps you can take to take control of your money and your future.
At Got Money Honey, our course helps women just like you be empowered by learning more about their own money and making the right decision to better their future.
Want to make informed money decisions about your superannuation, retirement and more?
Sign up for our masterclass today!