Women and superannuation – why women need to think more about retirement than men

Let’s face it — superannuation isn’t the most exciting thing to talk about! So we tend to delay the discussion until we’re closer to retirement age. Unfortunately, to be best prepared we need to think about it sooner rather than later, especially as women. We face many unique challenges in saving for retirement and need to take control of our retirement savings even more so than men.

Here are some frightening statistics, taken from the AIST and Women In Super Women’s Super Summit Report, 2014.

1. On average women will retire with 42% less super savings than men. This is because women are generally the primary care givers, taking time out of the workforce to care for children or elderly parents and often work part time.
2. Women are still generally paid about 17% less than men so this just adds to the disparity.
3. And to top things off, women generally live about five years longer than men. So less money needs to go even further.

We believe everyone has the right to a comfortable retirement – both men and women. Here are a few tips to keep your super moving in the right direction, so your retirement can look like those cheesy commercials.

1. Track down lost super

It’s like realising you have a winning lotto ticket! It’s easy to lose track of your super accounts, especially if you’ve moved from job to job over the years or changed your address. There are billions sitting in lost or unclaimed super accounts – some of it could be yours! Get in touch with your super provider and ask them to do the hard work tracking it down for you.

2. Consolidate multiple super accounts

We’d all prefer to pay less fees, right? Did you know that with each super account you have, you’re likely to pay account administration fees and insurance fees more than once? Fees and charges can add up and eat into your savings over time, so keeping your super in one account lets you take full advantage of growing your savings over the long term. Plus you’ll find it easier to keep track of your super balance. Just make sure to check whether there are any exit fees and that you can get the right level of insurance in your chosen fund.

3. Make additional contributions

Put as much money as you can into your super when you can, preferably from your first job. Small contributions can make a huge difference over a number of years, and ‘before-tax’ contributions into super are generally taxed at only 15% so it can be a very efficient way of saving for the future. Even $20 a week extra in super can help boost your retirement savings by thousands of dollars.

Making a few small changes could help you set up for a more comfortable retirement. Get in touch with the team at Kinetic Super to help supercharge your retirement savings – it’s never too late to start!