Empowering Women: Taking Charge of Your Superannuation for a Secure Future

We are starting to see many women now working longer into their lives and relying more on their husband’s superannuation for support. While social and economic factors such as the cost of living play a role in this trend, it’s essential that women understand the implications for their financial futures

1. The Changing Nature of Retirement

Historically, women have relied on their spouse’s retirement savings, perhaps due to interrupted career paths for child-rearing or other caregiving roles. However, as life expectancies increase, women may find themselves outliving their partners and potentially facing financial challenges in particular relying solely on the government aged pension.

2. The Gender Pay Gap and Superannuation

Despite strides towards equality, the gender pay gap still exists. This means that on average, women are earning less than men, which translates into less superannuation. With women working longer, it’s imperative that they actively contribute more to their super to secure their financial futures.

There are many ways in which both women and men can boost their retirement savings:

Salary Sacrifice: Consider sacrificing a portion of your salary into your super. This not only increases your super balance but also has potential tax benefits.

Contribution Splitting: If you have a partner, explore the possibility of splitting contributions. This strategy allows the higher-earning spouse to transfer a portion of their super contributions to the lower-earning spouse.

Government Co-contributions: For those earning below a certain income threshold, making after-tax contributions to your super can lead to government co-contributions, providing an extra boost.

Know Your Super: Regularly review your super account. Check for multiple accounts that may have been forgotten, consolidate them, and ensure your investments align with your risk profile and retirement goals.

As the retirement landscape shifts and evolves, it’s crucial for women to take control of their superannuation to ensure they’re not left financially vulnerable later in life. By actively participating in and understanding the superannuation system, women can better secure their financial futures and enjoy a comfortable and fulfilling retirement.

Remember, every individual’s financial situation is unique.

At Plus 1 Group we are always here to tailor advice to suit all individual circumstances.