With International Women’s Day last week and Close the Gap Day next week (27th March) it’s time to talk about another gap that still affects the lives of the majority of women in Australia: the Superannuation Gap. With more breaks to care for children or the elder, generally lower incomes and a longer lifespan than men, women are set to a dim retirement plan. Usually 42% less than their male counterparts.
What’s the Superannuation Gender Gap
And the gap doesn’t seem to be closing anytime soon with the average to reach 39% less by 2030. Interrupted work or reduces hours to look after the family and generally, in low paying jobs are the most impacting factors that contribute to lower savings in retirement.
In recent research by Industry Super, women are estimated to end up in retirement with 100,000 less than men. This difference is due to several facts:
- Women are usually the ones responsible for raising the family and caring for the elderly in unpaid positions.
- Jobs such as retail, caregiving, community and administrative are generally occupied by women and historically paid less.
- Career breaks usually mean a slower career progression and therefore lower incomes.
- Managerial positions are slowly equally filled by women but board level and directing positions are still prominently male-dominated.
- Women tend to live longer lives.
How To Close It
The problem has been on the spotlight before but very little has changed in the past decades. It’s an issue that businesses and the government can work together to solve. A few of the options presented are to push for an increase in super contributions by employers to 12% and to pay super on parental leave. Also offer the opportunity for men to also have part-time jobs more accessible, balancing out the care for the family. Likewise, getting rid of the annual contribution caps and recalibrating tax concessions would be another great opportunity to provide equal opportunities for all.
What Can You Do
But not all options are out of your control. Here are some tips to help you get on top of your superannuation game.
- Consolidate your super accounts to avoid paying multiple fees.
- Find a fund that provides better growth and returns. Also, continuously compare fees.
- Talk to your employer to make a salary sacrifice to contribute to your super.
- Invest some of your super fund money to increase your returns.
- Talk to your adviser to find the best way to save for retirement.
Preparing for the future may seem like a daunting task but the time to work for your retirement is now. Get the best advice possible and work towards your future. Talk to Super Network to compare your super today.
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