Women and money: Seize the day!Written on the 2 March 2020 by Arrow ![]()
As the world celebrates International Women's Day and all that women have achieved, it's a good opportunity to take stock. Women have undoubtedly come a long way in terms of workplace participation, equal pay and financial independence, but there is still some way to go. These days, women make up almost half the workforce although 43 per cent work part-time. Women also make up over half of university enrolments (58.4%), but on graduation they earn $5,000 less than similarly qualified men.i By the time retirement comes around, women face a triple whammy. Not only are women likely to earn less than men and take time out of the workforce to care for children, they can also expect to live longer than men, so their retirement savings need to stretch further.
Watch the gap According to the Association of Superannuation Funds of Australia (ASFA), single retirees need an annual income of $43,787 to live comfortably, while couples need $61,786. This is considerably more than the Age Pension, which currently pays around $24,000 a year for singles and $36,000 for couples. So how can women close the gap?
Practice money mindfulness People who have limited experience with investing often feel too embarrassed to ask questions, but there is no such thing as a stupid question. So talk to us about strategies such as the following to help you get ahead.
Start building your nest egg early This is even more important if you are planning to take time out of the workforce to have children, study or travel. While you are working full time and have disposable income, consider making voluntary tax-deductible contributions up to $25,000 a year (including your employer's Super Guarantee payments). You can also make after-tax contributions of up to $100,000 a year. Individuals returning to the workforce after a break may also be able to make catch-up super contributions. If eligible, you could carry forward unused amounts of your annual $25,000 tax-deductible limit for up to five years.
A sacrifice that pays
Work as a team
Choose your super with care There's no doubt that women have some extra challenges when it comes to building retirement savings. If you would like to discuss ways to create a financially secure future, don't hesitate to call. i Women in super, https://www.womeninsuper.com.au/content/the-facts-about-women-and-super/gjumzs ii ASFA, http://www.superguru.com.au/about-super/women-and-super iii http://www.superguru.com.au/grow-your-super/contributions/spousal-contributions ![]() |