Why we must address the superannuation gender gap
A study from retirement planning firm StatePlus has found 64 per cent of women believe they will struggle to achieve a comfortable retirement lifestyle. And if you look at the numbers, this sense of pessimism is more than forgiven.
According to figures from the Australian Bureau of Statistics, the average super balance for a women aged 55 to 66 is $180,000, compared to $322,000 for men.
But what can women do to boost their retirement savings? Well, according to StatePlus head of advice Suzanne Doyle, it starts with a degree of salary sacrifice.
Ms Doyle told News.com.au, “If they start earlier, compound interest makes a big difference. Don’t try and leave it until a couple of years out.”
Ms Doyle also touted upcoming changes to super rules and how they can be used to help women. From July 2018, people will be able to make catch-up, tax-deductible contributions to super.
Instead of the usual $25,000 cap on yearly contributions, people can roll over any part of their unused cap for a period of five years.
Ms Doyle also suggested the services of a financial planner, “It doesn’t have to be a big commitment to having a financial planner. They can help you just once — you don’t have to keep coming back and paying them money. They are there to help for situations like this.”
Are you concerned about the superannuation gender gap?